Weak demand combined with high inventory levels, high tariffs are also unlikely to rescue the steep drop in US lumber prices.

According to the Wisdom Financial APP, earlier this year, the Trump administration doubled the import tariffs on Canadian softwood lumber in order to support domestic prices and promote production in the United States. However, the result has been a significant price drop, leading to reductions in production at lumber mills on both sides of the border. The price of this key commodity for the construction industry has fallen by 18% since peaking in August, currently at its lowest point in seven months, due to sluggish housing construction activity and excess inventory.