BUSINESS

"Canada Condemns U.S. Lumber Tariff Increase"

26.07.2025 5,46 B 5 Mins Read

The decision by the U.S. Commerce Department to increase anti-dumping duties on Canadian softwood lumber to 20.56 percent has sparked widespread condemnation from British Columbia's lumber organizations. They characterize these actions as unjustified, punitive, and protectionist. The B.C. Council of Forest Industries issued a statement expressing concern that this trade action will adversely affect workers, families, and communities throughout British Columbia and Canada.

The council is urging the Canadian government to prioritize resolving the ongoing softwood dispute, asserting that the recent escalation from the U.S. indicates a need for immediate action rather than waiting for the U.S. to respond. In a separate statement, the B.C. Lumber Trade Council warned that if the U.S. Department’s forthcoming review on countervailing duties aligns with its preliminary results, the total duties against Canadian softwood entering the U.S. could exceed 30 percent.

Prime Minister Mark Carney had mentioned earlier in the month that any future trade agreement with the U.S. might include quotas on softwood lumber. This particular area has been a longstanding source of tension between the two countries, exacerbated by the current trade climate. In March, the U.S. Department had issued a preliminary anti-dumping rate of 20.07 percent, significantly up from 7.66 percent set three years prior. This is in addition to the already existing countervailing duties of 6.74 percent.

The B.C. Lumber Trade Council described the increasing duties as another instance of U.S. protectionism occurring during a time when cross-border cooperation should be prioritized. The B.C. Council of Forest Industries further suggested that the provincial government could implement several measures to support the industry in maintaining mill operations. Recommendations included activating timber sales, fast-tracking permits, and eliminating regulatory hurdles, thereby sending a clear message that B.C. is committed to rebuilding a sustainable forest sector.

In response to these developments, B.C. Minister of Forests Ravi Parmar criticized U.S. President Donald Trump's actions, stating that they threaten to harm the Canadian economy. Parmar remarked that the province's forestry sector has already been dealing with years of unpredictability, and the imposition of "rising unfair and unjust duties" from the U.S. only adds to the challenges faced by the industry. He noted that Premier David Eby has been in discussions with other provincial premiers regarding a collaborative Team Canada approach to tackle the issue.

To strategically address these challenges, Parmar has appointed Don Wright, the former deputy minister to the premier, as a strategic adviser on softwood lumber. Minister Parmar emphasized their commitment, stating, "We’re going to fight for our workers, our communities and the future of this sector."

This report, originally published on July 25, 2025, highlights the escalating tensions between Canada and the United States over softwood lumber trade as British Columbia’s forestry sector faces significant challenges due to increased tariffs and duties.

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