Washington Scene
Canadian Lumber Duties Hit 35% ― And May Go Higher Soon
The U.S. Commerce Department announced recently that it is more than doubling its countervailing duties on Canadian lumber imports from 6.74 percent to 14.63 percent.
This move comes just two weeks after the Commerce Department announced it is nearly tripling its anti-dumping duties on Canadian lumber imports from 7.66 percent to 20.56 percent following its annual review of existing tariffs.
As a result of these actions, countervailing and anti-dumping duties on Canadian lumber have jumped from 14.5 percent to 35 percent. The higher anti-dumping duties are now in effect, and the new countervailing rate will become effective when the announcement is made in the Federal Register, which is expected to occur next week.
Although the National Association of Home Builders (NAHB) noted disappointment by this decision to raise lumber tariffs, it is part of the regularly scheduled review process the United States employs to ensure adequate relief to American companies and industries impacted by unfair trade practices.
Even more troubling, tariffs on Canadian lumber could go much higher before the end of the month. President Trump in March directed the Commerce Department to launch a separate investigation under Section 232 of the Trade Expansion Act, which is examining whether lumber imports represent a threat to national security.
The Commerce Department was expected to announce the results of its Section 232 investigation before the end of last month. If the Trump administration finds that lumber imports pose a threat to national security and elects to impose lumber tariffs under Section 232, this universal tariff would apply to all nations. In Canada’s case, where lumber tariffs already total 35 percent, a new lumber tariff stemming from the Section 232 investigation would be tacked on to the existing 35 percent tariff.
For years, NAHB has been leading the fight against lumber tariffs because of their detrimental effect on housing affordability. In effect, the lumber tariffs act as a tax on American builders, home buyers and consumers.
With housing affordability already near a historic low, NAHB continues to call on the administration to carefully consider how placing additional tariffs on lumber and other building materials will raise housing prices and impact housing supply. We are also urging the administration to move immediately to enter into negotiations with Canada on a new softwood lumber agreement that will provide a fair and equitable solution to all parties and eliminate tariffs altogether.
Learn more at nahb.org.
