Trump Trade: President sets tariffs on imports of timber, lumber, wood products

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:

TARIFFS ON TIMBER, LUMBER: President Donald Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose tariffs on imports of timber, lumber, and their derivative products. The Proclamation imposes a 10% global tariff on imports of softwood lumber. The Proclamation imposes a 25% global tariff on certain upholstered furniture, which will increase to 30% on January 1. The Proclamation imposes a 25% global tariff on kitchen cabinets and vanities, which will increase to 50% on January 1.

Trading partners who negotiate with the United States to address the threat of wood imports to the national security of the United States may be able to secure an alternative to the pending tariff increases. The Section 232 tariff on subject wood imports from the United Kingdom will not exceed 10%. The combined Section 232 tariff and most-favored nation tariff on subject wood imports from the European Union and Japan will not exceed 15%. Products that are not subject to these Section 232 tariffs will generally be subject instead to reciprocal tariffs. Companies in the space include International Paper (IP), Boise Cascade (BCC), Weyerhaeuser (WY), West Fraser Timber (WFG), UFP Industries (UFPI), Home Depot (HD), and Lowe’s (LOW).

SETTLEMENT: YouTube will pay $24.5M to settle a 2021 lawsuit filed by President Donald Trump over suspending his account after January 6, 2021, The Wall Street Journal’s Rebecca Ballhaus and Annie Linksey report. The Google (GOOGL) subsidiary is the last of three Big Tech companies to resolve personal litigation Trump brought against social-media platforms in the months after he left the White House, with Meta (META) agreeing in January to pay $25M, and X agreeing to pay $10M, according to the report. Trump’s share of the YouTube settlement, $22M, will help fund a Mar-a-Lago-style ballroom at the White House, the report adds.

DRUG PRICE DEAL: President Trump will announce today an agreement with Pfizer (PFE) to voluntarily sell the company’s medications through Medicaid at lower prices, Dan Diamond of The Washington Post reports, citing two people who poke on the condition of anonymity. The Trump administration is seeking to lower drug prices in the U.S. to the lowest cost of drugs paid by the wealthiest countries, the Post notes.