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US to double tariffs on Canadian lumber to over 30% amid falling prices
Posted on December 30, 2024 |
The US plans to raise tariffs on over $3 billion worth of Canadian lumber, increasing rates from 14.4% to over 30% by November 2025.
The US Department of Commerce says the tariff hike is due to a 70% drop in Canadian lumber prices since 2021.
Donald Trump has also threatened a 25% tariff on all Canadian imports, adding more trade pressure.
Since 2017, Canadian lumber producers have paid over US$7 billion in duties, including interest held by the US government.
US buyers have shifted to using Southern Yellow Pine (SYP) instead of Canadian Spruce-Pine-Fir (SPF), causing Canada’s market share to fall from 33% in 2016 to 24% in 2024.
In September 2024, the US revised lumber duties to 14.4%, up from 8.05% earlier in the year, but slightly lower than 14.54% in August.
During the 2001-2006 dispute, 80% of collected duties went back to Canadian companies, while 10% went to US producers, 9% to US programs, and 1% to joint lumber promotion efforts.