The United States has increased countervailingĀ duties on Canadian softwood lumber, bringing the total to 35.19 per cent.
The decision was announced on Friday by the U.S. Department of Commerce.
Although the escalating fees were anticipated, they stillĀ drew swift condemnation and words of alarm from industry and political leaders in B.C. and Ontario, who say it is yet the latest example of unfair treatment of the industry from their largest and most important international partner.
“Two words describe Donald Trump’s latest move to increase countervailing duties on Canadian softwood lumber: absurdĀ and reckless,” B.C.’s Forests Minister Ravi Parmar said in a statement posted to social media.
“Adding these additional softwood duties …Ā will only worsen an affordability crisis on both sides of the border.”
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The B.C. Council of Forest Industries called the new fees “crippling” to workers in Canada, while the B.C. Lumber Trade Council pointed out the fees meanĀ higher prices for construction companies in the United States who rely on softwood imports in order to build new homes.
“This decision will harm communities on both sides of the border,” trade council president Kurt Niquidet said in a statement.
“What is needed now is a stable, negotiated agreement that supports jobs, trade, and housing affordability.”
A similar message was shared by the Ontario Forest Industries Association, which pointed to a report from the Canadian Chamber of CommerceĀ that found tariffs have already added up to $6,000 U.SĀ to the cost of building a single-family home in the United States.
The issue of softwood lumber has long been a point of contention between Canada and the United States, predating the current presidential administration by several decades.
In Canada, lumber-producing provinces set so-called stumpage fees for timber harvested from Crown land, a system that U.S. producers ā€” forced to pay market rates ā€” consider an unfair subsidy.
B.C. Forests Minister Ravi Parmar joins Power and Politics to discuss Prime Minister Mark Carney’s announcement of $1 billion in support for the softwood lumber industry in light of ongoing tensions over softwood lumber exports with the United States.
The U.S. Department of Commerce has agreed and has imposed duties reflecting its beliefĀ that the Canadian product isĀ being sold at less than fair value into the United States.
Escalating duties over the past decade have taken their toll on the industry in Canada, and especially in B.C., where hundreds of jobs have already been lost as mills have shuttered and scaled back,Ā in part a response to a lack of access to U.S. markets.
Earlier this week, Prime Minister Mark Carney announced new supports for the industry, including more than $1.2 billion in funding to help diversify its markets and retrain affected workers.
