British Columbia’s Forests Minister, Ravi Parmar, has indicated that tariffs on Canadian softwood lumber entering the United States could rise to as much as 55%. The statement was made during a trade mission in California, where Parmar met with industry leaders and policymakers to discuss the potential economic impact of increased trade restrictions.
Speaking outside the California State Capitol in Sacramento, Parmar emphasized concerns about the effect of tariffs on consumers and businesses in both countries. He noted that stakeholders in California’s construction sector have expressed apprehension over the rising costs associated with such trade measures.
The minister’s visit included discussions with the California Department of Forestry and Fire Protection, where he highlighted past collaborations between British Columbia and California in wildfire response efforts. He also addressed the importance of continued cooperation between the two regions.
In a joint statement with Dan Dunmoyer, CEO of the California Building Industry Association, Parmar underscored the significance of cross-border trade in the lumber industry. The statement suggested that any additional tariffs could lead to increased housing costs, particularly in regions recovering from recent wildfires.
According to industry sources, Canadian lumber plays a crucial role in the U.S. housing market, with a significant portion of California’s homebuilding materials sourced from British Columbia. Dunmoyer previously stated that there are limited domestic alternatives to Canadian lumber, as much of California’s forested land is federally or state-owned and not available for commercial logging.
The anticipated increase in tariffs follows a rise in U.S. duties on Canadian softwood lumber from 8.05% to 14.54% in August 2024. If the proposed 25% tariff is implemented, the total cost of exporting Canadian lumber to the U.S. could range between 50% and 55%, according to estimates from B.C.’s Forest Ministry.
The Canadian forestry sector has expressed concerns about the potential economic impact, arguing that the U.S. currently produces only about 70% of its domestic lumber needs, relying on imports from Canada to meet demand. Industry representatives have warned that further increases in tariffs could negatively affect British Columbia’s forestry sector, which has already faced multiple challenges in recent years.
Discussions between Canadian officials and U.S. policymakers on the matter are ongoing, with efforts focused on addressing trade concerns and maintaining a stable lumber supply for both markets.
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