NZ company caught up in US/Canadian timber tariff dispute [NZ]

NZ company caught up in US/Canadian timber tariff dispute [NZ]

Friday 25 Sep 2026

US Customs and Border Protection agents spent four days investigating Auckland timber processor Hermpac after a complaint from the US Lumber Coalition. The investigation found that a US wholesaler had been routing Canadian-origin wood through New Zealand for processing before shipping it back to the US, covering around 27,000km in the process.

The purpose, according to the investigation, was to avoid the duties imposed by the US on Canadian softwood lumber.

At the heart of the case is the US “substantial transformation” test. Customs concluded that kiln-drying Canadian cedar in Auckland added value and changed its condition, but did not fundamentally change the wood’s character or use. Its Canadian origin therefore remained, and the duties applied.

It is the first confirmed case of a New Zealand processor being directly investigated by US Customs in connection with the Trump-era tariff regime.

More >>

Source: B2B News

This video provides additional context on how North American trade actions and timber tariffs create widespread economic pressures across the global wood products supply chain.

Return to Newsletter

Share |