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Lumber Prices Extend Decline as Tariff Uncertainty Weighs on Demand
Lumber futures slipped below $570 per thousand board feet as unresolved US-Canada tariff talks and softening US housing activity kept buyers on the sidelines.
What Readers Should Know
- Lumber prices fell below $570 per thousand board feet as tariff uncertainty weighed on demand.
- Canadian officials are reportedly unhappy with the latest US tariff offer and are still pushing for zero tariffs on softwood lumber.
- Canadian softwood lumber was excluded when the US earlier imposed tariffs on other Canadian lumber-related products.
- US demand for Canadian lumber fell 1.7% in the first half of the year, with Canada's US market share slipping slightly.
- Shipments to non-US markets fell 3% over the same period.
- US mortgage rates hit a one-year high and single-family construction spending fell 3.3% year-on-year in June, adding to demand concerns.
Why Prices Moved
MONTREAL (Scrap Monster): Lumber prices fell below $570 per thousand board feet as tariff uncertainty continued to weigh on demand.
Canada's minister responsible for US trade relations said the country remains committed to negotiations. Reports indicated, however, that Canadian officials were dissatisfied with the latest US offer and continued to push for zero tariffs on softwood lumber.
Earlier, the US imposed tariffs on several Canadian lumber-related products, while Canadian softwood lumber itself was excluded from those measures.
What the Trade Data Showed
US demand for Canadian lumber fell 1.7% in the first half of the year, and Canada's share of the US market declined slightly over the same period.
Shipments to markets outside the United States also fell, down 3% from a year earlier.
Canada's Non-US Softwood Lumber Sales Fall 3% as Total Exports Drop 12% in First Half of 2026
North America Softwood Lumber Market Update: Q2 2026
What Happens Next
Mortgage rates rose to their highest level in a year, according to Freddie Mac, while mortgage applications declined in the final weeks of July.
Construction spending on lumber-intensive single-family housing fell 3.3% year-on-year in June, adding to demand concerns as the tariff dispute remains unresolved.
Courtesy: www.tradingview.com
People Also Ask
Why did lumber prices fall?
Prices fell below $570 per thousand board feet as tariff uncertainty between the US and Canada continued to weigh on demand.
Is Canadian softwood lumber currently subject to US tariffs?
Canadian softwood lumber was excluded when the US earlier imposed tariffs on other Canadian lumber-related products.
How much did US demand for Canadian lumber fall?
US demand for Canadian lumber fell 1.7% in the first half of the year, and Canada's share of the US market declined slightly.
What is Canada asking for in tariff negotiations?
Canadian officials have pushed for zero tariffs on softwood lumber and were reportedly dissatisfied with the latest US offer.
How is the US housing market affecting lumber demand?
Mortgage rates hit a one-year high, mortgage applications declined in late July, and construction spending on single-family housing fell 3.3% year-on-year in June.