Canada plans to challenge continuing lumber tariffs

The US announced the duty rate would be cut in half

MADISON, Wis. – The Canadian government said that it will challenge continued tariffs on Canadian lumber imports. Canada’s resistance to these tariffs came after the U.S. Department of Commerce announced on August 4 that the duty rate of 17.91% will be halved to 8.59% for most Canadian producers.

An earlier Department of Commerce announcement from January had set a preliminary duty rate of 11.64%.

Three Canadian firms, Canfor Corp. J.D. Irving Limited, and West Fraser Timber Co. LTD, will pay slightly lower tariffs due to special circumstances.

American trade officials and the White House have been under pressure from both Canadian lumber companies and U.S. home builders to eliminate or reduce the tariffs. U.S. home builders have advocated for tariff reductions as a way to lower new house prices.

“These duties have caused unjustified harm to the Canadian industry and its workers. They also amount to a tax on U.S. consumers, exacerbating housing unaffordability at a time of increased supply challenges and inflationary pressures,” said Mary Ng, Canadian International Trade Minister in a statement.

The tariffs will be challenged in a dispute resolution process established by the Canada-U.S.-Mexico trade agreement.

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