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US to raise tariffs for two big Canadian lumber companies
Posted on January 30, 2023 |
The U.S. Department of Commerce plans to raise tariffs for Canada’s 2 biggest lumber companies, West Fraser Timber Co. Ltd. and Canfor Corp. while lowering duties on most other Canadian producers.
West Fraser, Canada’s largest lumber producer, will have to pay a new duty rate of 9.38%, which will be taking effect by August or September, compared with its current tariff of 8.25%.
Canfor will see its tariff climb to 7.29% for Canadian softwood sold in the United States, compared with the current 5.87%, while most other producers in Canada will see their duty rates drop to 8.24% from the current 8.59%.
The U.S. Department of Commerce wants to maintain its unjustified duties on imports of Canadian softwood lumber which is a disappointing decision on both sides of the shared border.
However, the Canadian government is challenging the lumber tariffs in a process under the U.S.-Mexico-Canada Agreement that permits Canada and the U.S. to set up trade panels to settle disputes.
These unjustified duties act as a tax on American consumers, increasing building costs amid soaring inflation.
The Commerce Department’s latest activity is based on scrutinizing data from 2021 when lumber traded for over $1,600 for 1,000 board feet in the spring during a period of volatile price swings.