U.S. Proposes Increase in Import Duties on Canadian Lumber Amid Trade Dispute

The U.S. Department of Commerce (DOC) has announced a potential increase in import duties on Canadian lumber following its preliminary annual review of anti-dumping and countervailing duty orders. The proposed raise would see duties climb from 8.05% to approximately 14%. These are preliminary findings and are subject to finalization later this summer before implementation.

Reactions to the announcement varied. The U.S. Lumber Coalition, representing American softwood lumber producers, expressed satisfaction with the proposed increase. Andrew Miller, chairman and CEO of Stimson Lumber and spokesperson for the coalition, stated, “The duties simply offset the subsidies that Canadian producers receive from their governments and the Canadian producers’ unfair trade practices. They are essential to facilitate free and fair trade, giving U.S. businesses a shot to compete on a level playing field.”

However, the National Association of Home Builders (NAHB) voiced disappointment, primarily due to concerns about the potential impact on affordable housing. The NAHB stated, “For years, NAHB has been leading the fight against lumber tariffs because of their detrimental effect on housing affordability. In effect, the lumber tariffs act as a tax on American builders, home buyers, and consumers. With housing affordability already near a historic low, NAHB continues to call on the Biden administration to suspend tariffs on Canadian lumber imports into the United States and to move immediately to enter into negotiations with Canada on a new softwood lumber agreement that will eliminate tariffs altogether.”

As anticipated, Canada expressed dissatisfaction with the proposed increase in duties. Mary Ng, Canada’s international trade minister, stated, “U.S. duties on softwood lumber already unjustifiably harm consumers and producers on both sides of the border. Increased duties will further harm the Canadian softwood lumber industry, workers, and communities, and make housing even less affordable for Americans.” The ongoing trade dispute between the United States and Canada over softwood lumber has persisted for years, with both sides accusing the other of unfair trade practices. This latest development signals a potential escalation in tensions between the two countries over trade policies.

While the DOC’s preliminary findings have stirred reactions from stakeholders on both sides of the border, it’s essential to note that these results are subject to further review and may undergo adjustments before finalization. The implications of these proposed changes will continue to be monitored closely by industry observers, policymakers, and affected communities on both sides of the U.S.-Canada border.

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