iShares Global Timber & Forestry ETF

WOOD

Market cap $231M

He warned that tariffs on upholstered furniture, kitchen cabinets and bathroom vanities will jump on Jan. 1, 2026, unless foreign nations are able to reach trade agreements.

Builders are sensitive to lumber pricing. But they are likely to weather the new tariffs, one analyst says.

US President Donald Trump ordered 10% tariffs on imports of softwood timber and lumber, as well as 25% levies on kitchen cabinets, vanities and upholstered wood products. The tariffs are set to apply from Oct. 14, with some increases targeted to take effect Jan. 1, according to a proclamation signed Monday.

The White House set a relatively low tariff on imports of timber and lumber, and a significantly higher tariff on furniture and kitchen cabinets.

Timber ETFs: WOOD's Growth Potential Vs. CUT's Defensive Position

Over the last 100 trading days, or roughly five months, the S&P 500 Index (SPX) has surged more than 25%.

WOOD ETF offers a favorable risk-reward setup, with technical support at $66.25 and stops recommended below $65 per share. Lumber futures have outperformed WOOD in 2025, but WOOD remains a strong proxy for lumber exposure, especially after recent price weakness. Bullish factors include lower inflation, potential rate cuts, and increased wood demand from rebuilding efforts; bearish risks stem from high U.S. debt and elevated rates.

Lumber is in the spotlight as the National Association of Home Builders and the U.S. Lumber Coalition disagree about what's behind the U.S. housing market experiencing a slump.

The iShares Global Timber & Forestry ETF (WOOD) shows strong performance due to its international exposure and compelling valuation, despite market volatility. WOOD's heavy Materials sector weighting and low P/E ratio present a strong valuation case, but watch for economic growth and seasonal trends. Technical analysis indicates key support near $74, with potential resistance at $80; a breakdown could target $63. Use limit orders due to low liquidity.

CNBC's Diana Olick reports on how tariffs could be impacting the housing market.