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US President Donald Trump says he will pause tariffs on imports from Canada and Mexico until April 2. Trex (TREX) CEO and president Bryan Fairbanks joins Asking for a Trend with Julie Hyman and Josh Lipton to discuss the "moving target" that is Trump's tariff policy and how tariffs are expected to impact the company that makes wood-alternative composite decking.
"The vast majority of everything that we sell is manufactured in the US, [but] we do have a little bit that's sourced from outside the US [and that] will be subject to tariffs, but it will be immaterial in the whole scheme of things," Fairbanks tells Yahoo Finance.
The chief executive explains there may actually be an opportunity for Trex if the tariffs raise lumber prices, driving more consumers to their products: We could see the gap between a composite deck board and a lumber deck board tighten up a little bit."
Fairbanks outlines that the smaller the price difference between lumber and Trex's composite material, the more likely consumers are to upgrade from lumber.
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This post was written by Naomi Buchanan.