Canadian Lumber Duties Fall to 34.75% as Industry Seeks Deal

Canadian softwood lumber entering the United States now faces a combined duty and tariff burden of 34.75%, down from 45.16%, but provincial officials and industry groups say the remaining trade measures continue to pressure mills, construction costs and cross-border supply.

SEATTLE (Scrap Monster): Canadian softwood lumber entering the United States will face a combined duty and tariff burden of 34.75% following the latest U.S. Department of Commerce administrative review, prompting renewed calls from provincial officials and industry groups for a negotiated settlement.

The new level is below the previous 45.16% all-in burden but remains significant for Canadian producers supplying the U.S. construction market.

The Commerce Department's final seventh administrative review established a 14.11% countervailing duty and a 10.64% anti-dumping duty, producing a combined AD/CVD rate of 24.75%.

A separate 10% Section 232 tariff on softwood timber and lumber remains in place, bringing the combined headline burden to 34.75%.

Latest Review Cuts Duties From Previous Levels

The new 24.75% combined anti-dumping and countervailing duty rate is lower than the 35.16% combined rate applied following the previous administrative review.

The reduction provides some relief to Canadian producers, although the separate Section 232 tariff means overall border costs remain well above levels seen before the latest round of trade measures.

Canadian governments and producers continue to dispute the basis for the U.S. anti-dumping and countervailing duties.

Ontario Says Duties Continue to Raise Costs

Ontario Associate Minister of Forestry and Forest Products Kevin Holland, Natural Resources Minister Mike Harris and Economic Development Minister Vic Fedeli issued a joint statement criticizing the continuing duties.

The ministers said the measures are affecting workers, businesses and communities on both sides of the border and are contributing to higher construction costs in the United States.

“These punitive and unjustified measures are raising construction costs and making life more expensive for American families,” the statement said.

The ministers acknowledged that the reduction to 24.75% provides some relief but maintained that the duties should be eliminated.

Ontario called on U.S. officials to remove softwood lumber duties and tariffs and work with Canada toward a long-term trade agreement that provides greater certainty for producers and buyers.

Canadian Lumber Remains Important to U.S. Construction

The U.S. construction industry remains heavily dependent on imported softwood lumber because domestic production does not fully meet demand.

According to the National Association of Home Builders, Canada accounts for roughly 85% of U.S. softwood lumber imports and supplies close to one-quarter of total U.S. softwood lumber supply.

NAHB has repeatedly argued that higher tariffs on Canadian lumber increase costs for builders, home buyers and consumers.

The organization has also noted that expanding U.S. sawmill production enough to replace imported Canadian supply would take time.

BC Lumber Trade Council Calls for Negotiated Settlement

The BC Lumber Trade Council expressed disappointment that Canadian lumber producers continue to face substantial trade measures despite the reduction in the latest duty rates.

“The combined weight of duties and tariffs continues to place a significant burden on Canadian lumber producers,” said Kim Haakstad, interim president of the BC Lumber Trade Council.

Haakstad said the dispute has put pressure on jobs, mills and forestry communities across British Columbia for nearly a decade.

The council also argues that Canadian spruce-pine-fir lumber remains important to the U.S. construction market and cannot simply be replaced by Southern Yellow Pine in every application.

Spruce-pine-fir is widely used for framing applications including wall studs, floor joists and roof trusses, while Southern Yellow Pine is commonly used in applications requiring greater density and strength, including decks and other exterior structures.

The BC Lumber Trade Council said a negotiated agreement remains the preferred route to greater certainty for producers, builders and consumers on both sides of the border.

“Lumber crosses our shared border because builders on both sides need it,” Haakstad said.

Courtesy: www.torontosun.com