How one local sawmill is already feeling the effects of new tariffs
How local cattle farmers feel about the new tariffs
On April 5, President Trump imposed a minimum 10-percent tariff on all countries that the United State has trade agreements with.
According to The White House's official website, another individualized tax will be imposed on the countries the United States has the highest trade deficits with.
That will take effect on April 9th.
Even before another tax is added, our local sawmills are already feeling the effects of the tariffs.
John Beeson, Procurement Forester for Meador Wood Products in Flat Top, said it's going to be rough for local sawmills for a while.
'Well, there's already orders being cancelled for lumber that's being shipped overseas, of course. But it also effects stuff that's here domestically just because it's just a ripple effect. I mean, and it's gonna be painful for a little while until we work through it,' said Beeson.
Beeson said his company has lumber on ships right now.
This lumber was previously heading to other countries but is now just floating on the open ocean until it's decided who will pay the tariff – the sawmill or whoever ordered the lumber.
He said the major products his company exports are West Virginia hardwoods, such as red and white oak.
Beeson said the tariffs will result in exports being worth less than previous years.
For example, if a company overseas orders lumber that would normally be priced for a thousand dollars, then the overseas company will only want to pay eight hundred dollars for the lumber so that the remaining money can be used for the tariff.
Beeson said, in his opinion, this could be a good thing in the long run.
'We shouldn't be exporting or importing as much as we are. Exporting's okay, but we shouldn't be exporting logs and lumber. We should be using it here and getting more products out of it, then shipping it. We're not the end users, and that's the biggest thing. And that's what he's, in theory that's what we're trying to do, or Trump's trying to do.' said Beeson.
More than $20 million in FEMA Disaster Assistance approved in West Virginia
Beeson said we're shipping logs and lumber to other countries who then turn them into value-added products and turn around and export those products back to the United States for a larger profit.
He hopes the new tariffs will encourage the country to use the raw goods they have, such as logs and lumber, by turning them into specialty products and then shipping them to other countries to create a larger profit margin here at home.
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