A logging truck on the roads near Kaitaia. Photo: 123RF
News that United States President Donald Trump imposed a tariff of 10 percent on imported timber has come as a relief to industry, which expected a higher figure.
Under the order, US importers would need to pay 10 percent for foreign softwood lumber and timber, and 25 percent for foreign timber furniture.
Mark Ross, chief executive of the Wood Processors and Manufacturers Association, said it was a relief as they thought it would be higher.
"We've been working through the essential impact of a tariff on our products since March this year so it wasn't a shock because we were, at one point, expecting a 50 percent tariff.
"So 10 percent is a bit of relief. It is still going to have a financial impact on the wood processing industry in New Zealand.
"We're exporting $380 million in products to the United States, so if you look at 10 percent of that, you're looking at a figure of around $40m that will be added on in tariffs."
Ross said they were working with exporters to work out how to handle the extra costs.
The tariffs would come into force on 14 October.
"So we've got a couple of weeks just to work through that and to make sure that the exporters are geared up to deal with that tariff.
"If they have got boats on the water at the time, they will be affected and impacted by that tariff."
Ross said the United States was New Zealand's third-largest export market and continued to grow.
Earlier this year imports of timber and lumber products into the US dodged tariffs by Trump while the impact timber imports were having on its "national security" and local sector were assessed.
Trade Minister Todd McClay said they were seeking further detail on the tariffs from officials in Washington for what it means for exporters.
He said they would be working closely with the US to make it clear that New Zealand wood products complement rather than compete with domestic production.
However, he added that forestry exporters were resilient and well-diversified.
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