The US announcement of 10% tariffs on imported softwood timber and lumber, among other products, is a "positive" development for domestic lumber and timber producers like Weyerhaeuser (WY), Rayonier (RYN), PotlatchDeltic (PCH), and Boise Cascade (BCC), Truist Securities said in a Tuesday note.

The tariffs should support domestic lumber pricing, which is currently about 8% below the 2024 average, and will increase the cash costs of Canadian lumber producers, resulting in production cuts and a tightening of North American lumber supply and demand dynamics, Truist said.

The tariffs will take effect on Oct. 14, according to the White House announcement.

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