WELLINGTON, Oct. 1 (Xinhua) -- The United States has imposed a 10 percent tariff on most softwood lumber and timber imports from New Zealand, a move expected to hit the country's forestry and wood-processing sectors, industry groups warned Wednesday.
The new duty will erode competitiveness, squeeze margins and raise costs for American consumers, industry peak bodies said.
"These new tariffs are disruptive for New Zealand's forest sector at a time when confidence is vital," said New Zealand Forest Owners Association (NZFOA) chief executive Elizabeth Heeg.
The tariff creates immediate challenges for both forest growers and wood processors, Heeg said, adding the industry would actively seek to diversify and expand into new markets.
"They add uncertainty and risk for exporters who are working hard to build long-term, sustainable supply chains benefiting both countries," she said.
The tariff, announced by U.S. President Donald Trump following a Section 232 investigation into national security impacts of timber imports, will take effect on Oct. 14. Washington had considered duties as high as 50 percent before settling at 10 percent.
New Zealand exported about 370 million NZ dollars (215 million U.S. dollars) worth of radiata pine products to the United States in 2024, making it the third-largest export market for value-added forest products, according to the NZFOA.
New Zealand Wood Processors and Manufacturers Association chief executive Mark Ross said the additional costs may be absorbed by exporters or passed on to U.S. buyers. ■