27 Jul 2025, Sun

Canadian Lumber Duties in Ongoing Trade Conflict

The United States is planning a major increase in duties on Canadian softwood lumber.

This action comes even before proposed tariffs are formally implemented by the US government.

Anti-Dumping and Countervailing Duties Rise

According to filings from the Federal Register, duties will rise from 14.4% to 34.45%.

These duties result from the US Department of Commerce’s annual review process.

This is a separate action from tariffs recently proposed by the US administration.

Longstanding Lumber Dispute Between US and Canada

The Canadian lumber duties are part of a decades-old disagreement between the neighboring countries.

The US claims Canada’s lumber industry benefits from unfair government subsidies.

Canadian officials, however, strongly oppose these claims and label the duties as unjustified.

Canadian Response to US Actions

British Columbia Premier David Eby condemned the planned increases.

He said the Canadian lumber duties would drive up housing costs for Americans.

Eby emphasized this contradicts US promises to lower costs for American families.

Impact on US Housing Market

Approximately 30% of softwood lumber in the US is imported.

Of that, more than 80% comes from Canadian suppliers, including British Columbia and Quebec.

US builders estimate that new duties could add $9,200 to the average price of a home.

Industry Reactions from the US

While builders are concerned, many US lumber producers support the increase.

They argue the Canadian lumber duties will help American mills compete fairly.

Andrew Miller of the US Lumber Coalition said Canada uses unfair trade practices.

He believes Canada manipulates the market and harms American workers.

Capacity to Scale Up US Production

Some US producers say they can scale up operations quickly to meet demand.

Jason Brochu from Pleasant River Lumber in Maine says his mills run at just 60% capacity.

He believes they could expand operations and hire workers within months.

“The employment is available,” Brochu said. “We can ramp up fairly quickly.”

Future Outlook for Canadian Lumber Duties

This planned duty hike signals continued trade tension between the US and Canada.

The lumber conflict is expected to intensify as tariffs and duties raise building costs.

Both governments will likely continue to defend their national industries.

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