As expected, the U.S. government intends to follow through on its plans to raise softwood lumber tariffs against Canadian producers to 34 per cent some time this year.
Though nothing from the U.S. Department of Commerce’s annual administrative review of Canadian lumber imports was posted on its website, the U.S. Lumber Coalition decided to deliver the news for them.
The highly influential Washington industry lobby group said on April 4 that the department was hiking rates by 20 per cent as a result of a review of Canadian lumber imports in 2023.
Andrew Miller, chairman of U.S. Lumber Coalition and owner of Stimson Lumber, called Canadians unfair traders that are causing “egregious harm” to U.S. producers through “massive predatory unfair practices” that give Canadian products an advantage in the marketplace that curtails American mill production and kills jobs.
In a news release, Kevin Holland, Ontario’s associate minister of forestry and forest products, and Vic Fedeli, minister of economic development, job creation and trade, could only express their displeasure.
“Ontario is deeply disappointed that the United States intends to drastically raise duty rates on Canadian softwood lumber exports later this year. These unjustified and punitive measures will raise construction costs and further strain housing affordability for American families.”
The two MPPs said the escalation of these duties will harm jobs, communities and economic growth on both sides of the border.
The province said Ontario’s forest sector generates close to $23 billion in revenue and supports more than 137,000 jobs.
“We remain firm that these duties should be lifted entirely,” they said in the release.
More hurt for Canadian producers could be on the way. The Trump administration has not yet made good on its threat to add import tariffs on lumber. Trump has ordered a national security investigation into Canadian timber practices.
The Canada-U.S. softwood lumber dispute has been an ongoing trade dispute for 25 years.
American lumber industry lobbyists have frequently sought restrictions from Washington on Canadian softwood lumber imports by imposing countervailing duties and anti-dumping laws, claiming that U.S. industry is being harmed because the Canadian forestry industry is, allegedly, being subsidized by its home governments.
Since Canadian forests are largely considered Crown land, owned by the provinces, Washington lobbyists, like the U.S. Lumber Coalition, argue Canadian sawmills are unfairly subsidized since the provincial governments allegedly set low fees, in the form of stumpage rates, which they claim undermines the market.
