Canadian Lumber Duties Cut to 24.75% as 10% Tariff Stays

More than 200 Canadian lumber producers and exporters will face lower U.S. trade duties after the latest Commerce Department review cut the combined anti-dumping and countervailing rate to 24.75%. A separate 10% Section 232 tariff keeps the total import burden at 34.75%.

By Paul Ploumis
Published October 19, 2026

SEATTLE (Scrap Monster): More than 200 Canadian lumber producers and exporters will pay lower duties to ship softwood lumber into the United States following the U.S. Department of Commerce's seventh annual administrative review.

The anti-dumping rate applying to most covered producers falls to 10.64% from 20.53%, while the countervailing, or subsidy, duty declines to 14.11% from 14.63%.

Together, the two trade-remedy duties fall to 24.75% from 35.16%.

However, Canadian softwood lumber remains subject to a separate 10% Section 232 tariff, bringing the total headline import burden to 34.75%.

“Lumber crosses our shared border because builders on both sides need it,” said Kim Haakstad, interim president of the BC Lumber Trade Council.

Commerce Sets Final Duties on 2024 Lumber Shipments

The Commerce Department determined that Canadian producers dumped softwood lumber into the United States during 2024, with the latest review establishing the final duties owed on those shipments.

The department delayed its subsidy determination twice, first by 53 days in August and then by a further seven days the following month, before signing both sets of final results.

The revised rates are scheduled to take effect following publication of the final determinations.

Canfor Faces Highest Dumping Rate Among Reviewed Producers

Among the three producers examined individually by Commerce, Canfor received the highest anti-dumping rate at 17%, down from 35.47% following the previous review.

Resolute's anti-dumping rate was set at 13.13%, while West Fraser received the lowest of the three individually examined rates at 4.71%.

Interfor and Weyerhaeuser are among the companies that were not examined individually and will be subject to the broader 24.75% combined anti-dumping and countervailing rate.

Commerce also removed 105 companies from the anti-dumping review, including 93 after requests for their review were withdrawn.

U.S. Lumber Industry Backs Trade Measures

The U.S. Lumber Coalition welcomed the latest Commerce findings.

“The Commerce Department has reaffirmed that Canada continues to trade unfairly in softwood lumber,” said Zoltan van Heyningen, executive director of the U.S. Lumber Coalition.

Steve Swanson, chair of the coalition, said Canada's share of the U.S. lumber market had fallen to levels last seen in the 1970s.

Home Builders Continue to Push for Tariff Relief

The National Association of Home Builders (NAHB), however, continues to call on the U.S. administration to suspend tariffs on building materials, including Canadian lumber, and negotiate a new softwood lumber agreement with Canada.

NAHB argues that lumber tariffs increase housing costs by “effectively taxing American builders, home buyers and consumers.”

The organization has long maintained that trade restrictions on Canadian softwood lumber contribute to higher material costs at a time when U.S. housing affordability remains under pressure.

Section 232 Tariff Keeps Total Burden at 34.75%

The separate 10% Section 232 tariff applies to imported softwood timber and lumber and remains in force alongside the anti-dumping and countervailing duties.

Hardwood timber and lumber were excluded from the measure. The administration also directed Commerce to review hardwood imports before determining whether additional phased duties recommended earlier would be warranted.

With the Section 232 measure included, Canadian softwood lumber entering the U.S. market faces an overall headline tax burden of 34.75%.

NAFTA Panel Leaves Subsidy Finding in Place

A NAFTA binational panel on October 5 upheld Commerce's revised subsidy determination stemming from the original 2017 softwood lumber proceeding.

Global Affairs Canada said the decision effectively concludes Canada's challenge to that determination.

Separately, a New Hampshire lumber importer is challenging a U.S. Customs and Border Protection finding that it evaded Canadian lumber duties by routing shipments through New Zealand.

Eighth Administrative Review Already Underway

Commerce plans to instruct U.S. Customs and Border Protection to assess the final duties on covered 2024 shipments no earlier than 41 days after publication of the latest results.

The department has already opened its eighth administrative review of the Canadian softwood lumber orders.

Resolute and West Fraser have again been selected for individual examination in that review, according to Global Affairs Canada.

Courtesy: www.woodcentral.com.au