Canada is calling it unfair, but U.S. lumber producers say an increase in tariffs is needed.
The U.S. Department of Commerce is almost doubling the fee placed on Canadian softwood lumber imports.
It is going from 8% to over 14.5%, impacting most Canadian mills.
Mary Ng, Canada’s Minister of Export Promotion, International Trade and Economic Development, says the increase is unfair and unwarranted.
“Baseless and unfair U.S. duties on softwood lumber unjustifiably harm consumers and producers on both sides of the border,” says Ng.
“This latest measure will negatively impact workers and their communities. U.S. consumers and businesses that need Canadian lumber will bear the burden of these duties, making housing even less affordable for Americans.”
The new rate is also being applied to shipments dating back to 2022.
The U.S. Lumber Coalition applauds the increase, saying it will protect U.S. lumber mills.
The Coalition says the change backs its long-standing claim that Canadian softwood lumber is unfairly subsidized.
“This even higher level of unfair trade by Canada could not have come at a worse time for domestic producers,” Andrew Miller, chair of the U.S. Lumber Coalition, states in a release.
“Lumber demand and prices are at record lows, and mills across the country are struggling to keep afloat.”
The Coalition argues that Canada’s trade practices are resulting in extremely low lumber prices and forcing U.S. mills to close and lay off workers.
Ng says Canada will continue to fight its case, including using litigation under the North American Free Trade Act, the Canada-United States-Mexico Agreement, at the U.S. Court of International Trade and the World Trade Organization.
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