On Tuesday, March 4, 2025, the Trump Administration imposed 25% tariffs on imports from Mexico and Canada. Given that one-quarter of all the softwood lumber consumed in the United States comes from Canada, U.S. timberland investors are naturally interested in how this could impact their assets.
Chung-Hong Fu: Managing Director Economic Research and AnalysisDOWNLOAD (7MB PDF)The last time annual inflation exceeded 6% was during the Carter administration (1977-1981). It is easy to understand why for some investors, inflation hedging assets have not been top of mind. Over the years, timberland has attracted attention because of its long-term competitive returns, its low [...]
Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (7MB PDF) While housing—specifically housing starts and the repair and remodeling sectors—has traditionally driven timber demand, other industries such as infrastructure development, domestic manufacturing, and wood-based commercial construction are expected to play an increasingly prominent role. In “Thinking Outside the House: How In-Shoring and Infrastructure [...]
An investor with timberland investments, or with plans to make timberland investments, may be wondering how the incoming Trump presidency will impact the asset class. The potential effects are numerous.
Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (2MB PDF) Over the past 40 years, the institutional timberland asset class has found its place in various parts of investors' asset allocations. Its inability to be easily categorized reflects its unique risk and return characteristics, which do not align neatly with any specific peer [...]
