Canadian softwood producers positioned to reap big refunds on U.S. lumber tariffs
By Brent Jang
The Globe and Mail
January 25, 2023
Canadian softwood producers are positioned to reap large refunds after paying deposits totalling US$6.1-billion in U.S. lumber tariffs over the past six years… according to CIBC Capital Markets Hamir Patel. While the trade fight lingers, Mr. Patel said history is on the side of Canadian producers, who recouped 80 per cent of the U.S. lumber tariffs paid in the previous round of the dispute from 2001 to 2006. …Forest Economic Advisors Paul Jannke estimates that Canada’s share of U.S. lumber consumption has been steadily eroded, falling to 26 per cent last year, compared with nearly 33% in 2016. Mr. Jannke said that while there aren’t signs of a trade truce this year, there could be greater incentive to reach a pact if lumber prices sink further. …Mr. Patel said any softwood pact could take another 18 months to materialize, with refunds taking many more months to process before showing up in Canadian producers’ bank accounts in 2025.