U.S. set to significantly hike softwood lumber duties against Canada
The United States has announced plans to significantly increase the duty charged on softwood lumber imports from Canada, more than doubling the current rate to 34.45 percent from the previous 14.54 percent. This decision, confirmed by both the B.C. premier’s office and the U.S. Lumber Coalition, comes amid escalating trade tensions between the two countries.
The prospect of new softwood lumber duties has long been a concern as the trade war between Canada and the U.S. continues to intensify. This move would deal a severe blow to British Columbia’s forestry industry, which has already experienced significant layoffs in recent years.
B.C. Premier David Eby strongly condemned the planned duty hike, describing it as an “attack on forest workers and British Columbians.” He emphasized the importance of finding a resolution to the ongoing trade dispute, as it impacts both Canadian and American citizens who rely on Canadian lumber for construction projects.
Under the U.S. Tariff Act, the Department of Commerce assesses whether imported goods are being sold below fair market value or benefitting from foreign government subsidies. The U.S. Lumber Coalition has accused Canada of maintaining an unfair advantage through stumpage fees set by lumber-producing provinces for harvesting on Crown land.
Andrew Miller, chairman of the U.S. Lumber Coalition, welcomed the increase in duties, alleging that Canada’s trade practices artificially inflate the U.S. market share for Canadian products and harm American companies and jobs.
In response to the planned duty hike, B.C. Premier David Eby announced plans to meet with the Prime Minister to discuss possible countermeasures and strategies to challenge the tariffs through available avenues. He stressed the importance of protecting jobs in the forestry sector and urged for a unified approach to address the issue.
The U.S. market has traditionally been a significant destination for B.C. lumber exports, accounting for over half of the approximately $10-billion industry. However, challenges such as the mountain pine beetle infestation and mill closures have led to a decline in forest-sector jobs in the province, with major companies establishing new mills in the United States.
Statistics from 2023 revealed that B.C. had lost more than 40,000 forest-sector jobs since the early 1990s, underscoring the critical impact of the forestry industry on the province’s economy. The escalating trade tensions between Canada and the U.S. pose a significant threat to the livelihoods of workers in the forestry sector, highlighting the urgent need for a resolution to the ongoing dispute.
