The U.S. Department of Commerce has made a final decision to more than double the countervailing duties on Canadian softwood lumber imports. Most Canadian softwood lumber companies will now face a duty increase to 14.63%, up from the previous 6.74%. This hike is in addition to a recent rise in anti-dumping duties, bringing the total duty level to 35.19%.
The Department of Commerce stated that the increase was necessary because Canadian softwood lumber is being unfairly subsidized. U.S. Customs and Border Protection has been told to start collecting these increased duties. British Columbia’s Minister of Forests, Ravi Parmar, called the decision “absurd and reckless” in a social media post.
He said the increased duties would make the affordability crisis worse in both countries. “Like with the anti-dumping duties, I have instructed our province’s legal representation to work with our federal partners to appeal this determination.
U.S. increases duties on softwood
We will use every legal avenue available to fight back,” Parmar said. Kurt Niquidet, president of the BC Lumber Trade Council, also expressed concern. He said the decision puts unnecessary strain on forestry-dependent regions in Canada while driving up construction costs for American builders.
The council stressed that resolving the softwood lumber dispute should be a top economic priority for both the Canadian and U.S. governments. The BC Council of Forest Industries urged the provincial government to take steps to reduce the impact of the duties. This includes streamlining permitting processes, activating provincial timber sales, and removing cross-ministry bottlenecks.
Prime Minister Mark Carney visited British Columbia this week. He promised $700 million in loan guarantees for the industry and an additional $500 million for long-term supports. This will help companies diversify export markets and develop their products.
