Sawmills Across America Face Permanent Closures Amid Trade Uncertainty

Manchester, Tennessee. – Many sawmills in the U.S. are finding it hard to keep their doors open. Industry leaders are attributing this struggle to ongoing trade uncertainties that have dried up export markets and severely squeezed profit margins.

The Hardwood Federation has noted that at least one sawmill closes every week. Furthermore, the National Hardwood Lumber Association (NHLA) has reported that over 4% of U.S. sawmills have either shut down or consolidated recently.

For Johnny Evans, owner of Evans Lumber Company in Manchester, this situation is particularly pressing. He’s eager to prevent his sawmill from being sold at auction. Unfortunately, to save costs, he had to shut the sawmill down the week of Thanksgiving due to a lack of wood orders. Despite investing time into repairs, he lamented that such efforts do not compensate for lost income.

“It’s dead quiet around here,” Evans remarked. “Usually, we operate at least three days a week, but many of our customers have opted not to take wood this week.”

Evans pointed out that much of the current turmoil can be traced back to trade tensions that began in 2018 during the initial Trump administration. That’s when several countries, particularly China, halted purchases of U.S. hardwoods as a response to tariffs imposed by President Trump.

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At that time, U.S. hardwoods were one of the top exports to China, but with the trade retaliation, American timber exporters lost nearly half of their market share to countries like Russia, Malaysia, and Thailand.

Evans mentioned that current negotiations between the U.S. and China are amplifying stresses that started years ago. “The Vietnamese told us they wouldn’t purchase our products until we bought theirs,” he explained. “Sales are down, lumber prices are down, yet our costs have doubled.”

The NHLA indicated that tariffs imposed by foreign nations remain inconsistent and create further complications for global hardwood distribution. This situation is leading to reduced profit margins, shifting production, and altering supply chain dynamics not just in the U.S., but across various regions.

“During the trade dispute back in 2017, the hardwood lumber industry suffered dramatically, with a 20-25% drop in exports,” stated NHLA Executive Director Darin Brooks. “Some businesses were forced to close, and many are still struggling. This year has turned out to be even worse.”

In September, President Trump enacted a 10% tariff on lumber, along with a 25% tariff on furniture and cabinetry. Shortly after, over 450 U.S. sawmills appealed for relief from the U.S. Department of Agriculture and the White House, asking for the administration to prioritize their industry in future negotiations with China.

“We were caught in the crossfire,” said Dana Lee Cole, executive director of the Hardwood Federation. “When their products face tariffs here, and our market is dwindling, they will respond.”

Many sawmills now face additional challenges as consumers are increasingly turning to cheaper composite and synthetic wood alternatives, often marketed as premium products. “These factors create a perfect storm of complications for us,” Cole noted.

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Claire Getty of a family-owned sawmill in Huntland, Tennessee, is also feeling the heat as competition from big-box stores rises. These stores often feature vinyl and plastic flooring disguised as luxury alternatives.

“If you visit a major store now, there are over 200 wood-look options in vinyl planks but only a handful of actual hardwood products. I believe people want wood, but it’s increasingly hard to find,” Getty commented.

She explained that this shift toward artificial wood options has far-reaching consequences, affecting everyone from sawmills to lumber producers.

“We’re an industry worth saving,” Getty asserted.

Several sawmill owners have scheduled a trip to Washington, D.C., next year to seek assistance directly from their representatives and the current administration.