A longstanding dispute intensifies following a fresh ruling
The US Commerce Department has announced it will impose 20.56% anti-dumping duties on Canadian softwood lumber imports, injecting fresh drama into a dispute that some believe could see homebuilding costs spike in the US.
The decision represents a substantial increase from the previous 7.66% rate set three years ago. When combined with existing countervailing duties of 6.74%, the total tariff burden on Canadian lumber could exceed 30%, according to the BC Lumber Trade Council.
‘Gut punch’ for BC industry
BC forests minister Ravi Parmar called the rate hike a “gut punch” for the province’s forestry sector, which has already lost thousands of jobs in recent years.
“US president Donald Trump has made it his mission to destroy Canada’s economy, and there is no sector that has faced more of that than the forestry sector,” Parmar told CBC News. “This is going to have a significant impact. It will lead to curtailments.”
The lumber market has faced significant headwinds in recent years, with lumber prices spiking during the COVID-19 pandemic but plunging within months. The current dispute has escalated amid a wider trade war between Canada and the US, with little sign that a deal is imminent despite the approaching August 1 deadline set by President Trump.
Retroactive payments required
The United States represents over half the market for BC's approximately $10-billion lumber industry. The Commerce Department’s decision also requires Canadian companies to retroactively pay duties on products shipped to the US since January 1, 2023.
The Canadian Chamber of Commerce believes tariffs could see the cost of building a home jump by about $14,000 across the US, although that was questioned by the US Lumber Coalition and blasted as "unfounded scare tactics."
The BC Council of Forest Industries called the duties “unjustified, punitive and protectionist,” urging the provincial government to activate timber sales, fast-track permits and reduce regulatory barriers to help mills remain operational.
Prime minister Mark Carney suggested earlier this month that future trade agreements with the US could include softwood lumber quotas to address the longstanding dispute between the two countries.
What are your thoughts on how the new lumber duties will impact the B.C. forestry industry? Share your insights in the comments below.
