OFIA Announced its Response to Fresh U.S. Proposal on Lumber Tariffs

SEATTLE (Scrap Monster): The Ontario Forest Industries Association (OFIA) has issued a statement in response to the recent announcement by the U.S. Commerce Department to double the preliminary tariffs on softwood lumber imports from Canada. The department had recommended raising the “all others” preliminary countervailing and anti-dumping rate from 8.99% to 18.32%.

In its response, Ian Dunn, President and CEO, OFIA noted that the U.S. decision will lead to significant increase in duties on Canadian softwood lumber. This will add to the cost of homebuilding, which are already at an elevated level. The decision will serve as another blow to U.S. consumers, he said. As per rough estimates by the National Home Builders Association (NHBA), the current high lumber prices have added $36,000 on average to the price of a new home.

The statement reminds the conclusion by the World Trade Organization (WTO) that every reason cited by the U.S. for imposing countervailing duties on softwood lumber imports from Canada is unfounded. It reiterated that Ontario’s forest industry is unsubsidized and that it will continue to defend the unjust trade actions by the U.S. It called upon the U.S. administration to live up to its international obligations.