U.S. Increases Canadian Lumber Tariffs to 14.54%

The U.S. Department of Commerce has nearly doubled tariffs on Canadian softwood lumber, increasing them from 8.05% to 14.54%, citing unfair subsidies and dumping practices by Canada. This decision has been met with significant criticism from Canadian officials, including International Trade Minister Mary Ng and B.C. Minister of Forests Bruce Ralston, who described the tariffs as 'unfair' and 'unwarranted.' The U.S. Lumber Coalition supports the increased tariffs, arguing that Canadian practices distort the U.S. market and harm American sawmills and communities. Canada's lumber industry, particularly in British Columbia, faces increased costs and potential curtailments as a result. Canada is considering legal action under NAFTA and the Canada-United States-Mexico Agreement to challenge the tariffs. The long-standing dispute centers on differing views over stumpage fees for timber harvested from Crown land in Canada versus market rates in the U.S.