Lumber Tariff Threat Could Impact Pallet Supply Chain

Lumber Tariff Threat Could Impact Pallet Supply Chain
A recent announcement from President Trump has raised concerns across the shipping and packaging industry. On April 2, 2025, Trump proposed sweeping new import tariffs, including a 10% blanket tariff on all imports and a 25% tariff on select materials like cars, auto parts, and raw goods.
Softwood lumber—used heavily in pallets and crates—isn’t included yet, but it's being discussed. That alone is enough to shake confidence in pricing and sourcing stability.
Canada Supplies the Bulk of U.S. Softwood
In 2023, over 80% of U.S. softwood lumber imports came from Canada—roughly 28 million cubic meters. This material forms the backbone of the U.S. pallet and packaging market. Any changes to trade policy with Canada could significantly affect pallet prices, availability, and supply chains across North America.
While the proposed tariffs haven’t been applied to softwood yet, it’s clear that lumber is in the crosshairs—and that could ripple across industries that rely on affordable, durable wood packaging.
Which Wood Is Actually Soft or Hard?
Despite what the names suggest, “softwood” and “hardwood” aren’t just about how hard the wood feels. The difference comes from the type of tree the lumber comes from—and how it’s used in the real world.
- Softwood comes from coniferous trees like pine, fir, and spruce (trees with needles). → It’s lighter, easier to cut, and more affordable. This is the main wood used for pallets, crates, and most industrial packaging.
- Hardwood comes from deciduous trees like oak, maple, and walnut (trees with broad leaves). → It’s denser, heavier, and typically more expensive, often used for furniture, flooring, or specialty items.
Even though some softwoods can be surprisingly tough, it’s softwood that dominates the shipping and packaging space—and that’s the material potentially facing tariffs.
What This Means for the Market
Right now:
- No tariff has been applied to softwood lumber—it’s only being considered.
- Only softwood is in the discussion, not hardwood.
- If applied, tariffs could disrupt pricing on new pallets, crates, and raw lumber.
Repackify’s Take
We’re watching the situation closely. If a tariff hits Canadian softwood, it could cause a jump in prices and strain availability on new wood packaging. That could also increase demand for used, refurbished, or recycled pallets—which we help customers source every day.
What you can do:
- Lock in orders early if you’re buying new pallets
- Explore cost-saving alternatives like recycled or Grade B pallets
- Get matched with suppliers in your area through our network
We’ll keep you posted as things evolve. No action is needed yet—but staying prepared helps avoid surprises down the line.