Some U.S. lumber manufacturers worry that tensions in the Middle East could harm their bottom lines as regional conflict disrupts trade. In South Pittsburgh, Tenn., Cardin Forest Products reports a sharp drop in orders from the region after recent missile strikes and Iran-Israel skirmishes rattled global shipping lanes.
“Before the U.S. attack, the impact on shipping patterns was limited. Now, after the U.S. attack, we have indications that the number of ships passing is reducing,” BIMCO’s Jakob Larsen said, warning that further Iranian attacks could shut down traffic through the critical Strait of Hormuz.
Mike Cardin of Cardin Forest Products says U.S. lumber manufacturers already feel the strain. “If it keeps escalating, there won’t be any orders coming in the next, who knows how long,” he lamented. He added that uncertainty over President Trump’s potential timber tariffs has stalled international demand even further: “Right now it’s a little painful. I mean, we’re stuck with warehouses full right now.”
Cardin notes foreign buyers have halted purchases in anticipation of new duties, leaving sawmills overstocked. His brother, Jarrod Cardin, explains: “If there’s some constant, then people will buy. They can adjust the pricing. Right now, no one knows what’s going to happen. So, it’s shut down that export market pretty much.”
U.S. lumber exports already face competition after China dropped large hardwood imports in 2017. Now, inflation complicates matters: wood product costs have risen 30% since the pandemic.
