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Trump Slaps 24% Tariff on Canadian Lumber

Old trade dispute awakens with new administration

April 25, 2017

As reported yesterday by Bloomberg.com, the Trump administration announced new countervailing duties ranging from 3 percent to 24.1 percent on Canadian lumber producers.

“We’re going to be putting a 20 percent tax on softwood lumber coming in -- tariff on softwood coming into the United States from Canada,” Trump said Monday, according to a tweet by Charlie Spiering, a White House correspondent for Breitbart News and confirmed by a White House official.

The action comes after the U.S. Department of Commerce released a report on Monday detailing its investigation of Canadian subsidies for six lumber companies at rates ranging from 24 percent to 3 percent.

Canada responded saying the tariff will negatively affect workers in both countries and raise construction costs in the U.S.

Softwood lumber products include wood siding, flooring, fence pickets, pallet components, door and window frames, and truss components.

In 2016, imports of softwood lumber from Canada were valued at an estimated $5.66 billion.

This is not a new area of dispute between the two countries and  follows a fight over a new Canadian milk policy that U.S. producers say violates the North American Free Trade Agreement.

“Canada has made business for our dairy farmers in Wisconsin and other border states very difficult. We will not stand for this. Watch!” Trump said in a tweet Tuesday morning.

Read how this issue has been growing since 1980 in Bloomberg's Trump Slaps Duty on Canadian Lumber, Intensifying Trade Fight here.

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