The U.S. Department of Commerce on Friday declared that the countervailing duties on Canadian softwood lumber have been raised, bringing the overall rate to 35.19%.
The move follows the department’s recent decision, made two weeks earlier, to nearly triple anti-dumping duties on Canadian lumber imports, raising the tariff from 7.66% to 20.56% after completing its annual tariff review.
Due to these measures, the combined countervailing and anti-dumping duties on Canadian lumber have increased from 14.5% to 35%. The higher anti-dumping duties are already in force, while the updated countervailing rate will take effect once it is officially published in the Federal Register, likely next week.
The department stated that it will direct U.S. Customs and Border Protection to start collecting the duties.
In March, U.S. President Trump instructed the Commerce Department to initiate a separate investigation under Section 232 of the Trade Expansion Act to determine whether lumber imports pose a national security risk. The department is expected to release the findings of the investigation by the end of the month.
The B.C. Lumber Trade Council, Canada (industry advocacy group), emphasized that the increased duties will lead to higher costs for U.S. construction firms that rely on softwood imports, while the B.C. Council of Forest Industries described the new tariffs as ‘crippling’ for Canadian workers.
The council urges both the Canadian and U.S. governments to resolve the ongoing softwood lumber dispute.
The softwood lumber dispute has been a longstanding source of tension between Canada and the United States. Earlier this week, Canadian Prime Minister Mark Carney unveiled a support package for the industry, including over $1.2 billion in funding aimed at expanding market access and retraining workers affected by trade pressures.
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