U.S. Lumber Coalition Challenges Canadian Subsidy, Citing Unfair Trade
Rubber and Wood | 2025-12-02 12:27:47
Industry leaders argue that Canada’s continued subsidies will intensify the ongoing trade dispute and ultimately result in increased duty collections at the U.S. border.
By Paul Ploumis
SEATTLE (Scrap Monster): The U.S. Lumber Coalition sharply criticized a new subsidy package announced by Canadian Prime Minister Mark Carney’s government, calling it another effort to support what U.S. officials describe as excessive and harmful overcapacity in Canada’s softwood lumber sector. The financial support adds to several multi-billion-dollar subsidy programs unveiled since August 2025, aimed at countering U.S. trade enforcement actions and President Trump’s tariff strategy to expand domestic lumber production.
Industry leaders argue that Canada’s continued subsidies will intensify the ongoing trade dispute and ultimately result in increased duty collections at the U.S. border. To date, Canadian lumber producers have paid more than $7 billion in duties to the United States. Critics say the latest package guarantees further tariff recovery as U.S. authorities maintain firm enforcement.
Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition, urged Canada to reduce its excess production capacity, calling it the root issue behind unfair trade practices. He emphasized the coalition’s commitment to defending U.S. workers, forest-dependent communities, and domestic mills.
Stimson Lumber Company Chair Andrew Miller condemned the subsidy strategy, alleging the Canadian industry is unable to compete without government intervention and urging the Trump Administration to consider additional immediate measures to protect the U.S. market.
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POLL
What should be the U.S. government’s top priority in response to Canada’s latest subsidy package?
Frequently Asked Questions
- Why is the U.S. Lumber Coalition criticizing Canada’s new subsidy package?
The coalition argues that the subsidies inflate Canada’s excess lumber capacity and undermine fair competition in the U.S. market.
- How much have Canadian lumber companies paid in duties to the U.S. to date?
More than $7 billion.
- What action is being requested from the U.S. government?
Industry leaders are urging President Trump and his administration to impose additional measures to protect domestic mills and jobs.
