U.S. Hikes Duties On Canadian Softwood Lumber To 14.54%
The United States has significantly increased duties on Canadian softwood lumber imports, escalating a long-standing trade dispute between the two nations. The U.S. Department of Commerce announced on Tuesday that it would raise the duty rate to 14.54% from the previous 8.05%, a move that has drawn sharp criticism from Canadian officials and industry representatives.
Mary Ng, Canada’s Minister of Export Promotion, International Trade and Economic Development, expressed disappointment with the decision, calling the duties “baseless and unfair.” She warned that the increased tariffs would negatively impact workers and communities on both sides of the border.
The U.S. Lumber Coalition, an industry group, defended the decision, claiming that Canadian practices distort the U.S. softwood lumber market. Andrew Miller, chairman of the coalition, cited record low lumber demand and prices, stating that mills across the country are struggling to stay afloat.
Canadian officials argue that their lumber-producing provinces’ stumpage fee system for timber harvested from Crown land is not an unfair subsidy, as U.S. producers claim. Kurt Niquidet, president of the B.C. Lumber Trade Council, dismissed the U.S. Lumber Coalition’s claims as meritless and expressed concern about the impact on production and forest-dependent communities.
The dispute centers on the U.S. Tariff Act, which allows the Department of Commerce to impose duties if it determines goods are being sold at less than fair value or benefiting from foreign government subsidies.
Canadian officials, including Ng and Bruce Ralston, British Columbia’s Minister of Forests, have vowed to challenge the U.S. decision through various legal channels, including NAFTA, CUSMA, the U.S. Court of International Trade, and the World Trade Organization.
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