Canadian Softwood Industry Faces Major Blow from US

The Canadian softwood industry is bracing for a significant challenge as reports suggest that the U.S. Department of Commerce may increase anti-dumping duties on Canadian softwood lumber.

Currently, most Canadian producers are paying a 7.66% anti-dumping duty on lumber shipments to the U.S. However, this rate could rise to as much as 20%. The new duty rate is expected to take effect in August.

The anti-dumping duty is being raised because the U.S. alleges that Canadian producers are selling softwood lumber in the U.S. at prices below market value.

Vancouver-based forestry analyst Ross Taylor noted that Canadian softwood producers are already paying a combination of countervailing and anti-dumping duties, totaling 14.4%. He warned that the potential tariff hike could significantly increase the total duties, leading to heavy taxation on Canadian lumber exports.