U.S. Increases Tariffs on Canadian Softwood Lumber Imports to 14.54%
Posted on August 29, 2024 |
After conducting an annual review of the current tariffs, the U.S. Department of Commerce raised the taxes on Canadian softwood lumber imports from 8.05% to 14.54%. This modification is a part of the standard review procedure that the US employs to give enough assistance to US businesses and sectors harmed by unfair trade practices.
Early in February 2024, the Department revealed its preliminary conclusions from its fifth administrative review of the anti-dumping and countervailing duty orders about softwood timber, which was started in March 2023. The agency published its final findings on August 19 and established the average combined antidumping and countervailing charges, which are still in place, at 14.54%.
Canada's Minister of Export Promotion, International Trade, and Economic Development, Mary Ng, voiced dissatisfaction with the rise in a written statement. She claimed that the unfair and irrational U.S. tariffs on softwood timber unfairly hurt producers and customers on both sides of the border. Ng expressed concern about how the most recent action will affect both the workers and their communities.
The Minister of Forests for British Columbia, Bruce Ralston, shared Ng's worries and expressed dismay at the U.S. Department of Commerce's move to impose what they called excessive and unjustified tariffs on softwood timber.
The Department of Commerce determines if commodities are sold below fair value or receive government subsidies from abroad in accordance with the U.S. Tariff Act. The stumpage fees that Canadian lumber-producing provinces impose on timber extracted from Crown land are seen by American companies who pay market rates as an unfair subsidy.
An industry group called the U.S. Lumber Coalition said on Tuesday that the Department of Commerce's rate decision proves Canada still dumps its softwood lumber products in the US and gives subsidies for them. The coalition contended that Canadian policies hurt American sawmills, their employees, and communities by distorting the softwood timber market in the United States.
The coalition's head, Andrew Miller, stated that mills all over the nation were having difficulty making ends meet due to the historically low prices and demand for lumber.
The head of the B.C. Lumber Trade Council, Kurt Niquidet, expressed regret over the decision to almost double the levy on Canadian softwood lumber and dismissed the U.S. Lumber Coalition's claims as baseless. According to Niquidet, higher tariffs would raise the cost of shipping timber to the United States, which would have an effect on communities that depend on the forest industry, workers, and production. British Columbia is already a high-cost producer that faces many obstacles.
Niquidet, Ralston, and Ng all pledged to use the Canada-United States-Mexico Agreement (CUSMA), the North American Free Trade Agreement (NAFTA), the World Trade Organisation, and the U.S. Court of International Trade, as legal avenues to contest the U.S. ruling.
Ng said that finding a long-term solution to the long-running conflict was in the best interests of both Canada and the United States.
To learn more about such news, subscribe to our newsletter today. For in-depth analysis of real-time data related to the global timber market, subscribe to our Market Data Hub.