The US Department of Commerce finalized a decision to more than double duties on Canadian softwood lumber, raising the combined anti-dumping and countervailing rate from 14.4% to 35.19%. The move follows the sixth administrative review of the trade measures.
The anti-subsidy rate will rise from 6.74% to 14.63%, while anti-dumping duties will range from 9.65% to 35.53%. US Customs and Border Protection will begin collecting the higher duties as outlined in the final results.
Ontario ministers Kevin Holland, Mike Harris, and Vic Fedeli issued a joint statement urging the United States to “uphold its commitment to free and fair trade” by lifting the duties. They warned “this decision ignores the real burdens duties impose on both sides of the border: reducing productivity, disrupting industry, driving up building costs and making housing less affordable for American families.”
The Ontario Forest Industries Association (OFIA) echoed these concerns, calling the increase “significant” and warning that higher costs will hurt both sides of the border. OFIA president Ian Dunn noted that Ontario exports roughly $7.9 billion in forest products annually and said the sector is ready to work with federal and provincial governments on stabilization measures.
US industry applauds move
The US Lumber Coalition welcomed the decision, accusing Canada of continuing to “flout US trade laws.” Executive director Zoltan van Heyningen pointed to Canada’s newly announced C$1.2-billion support package for sawmills as further evidence of unfair subsidies.
“We will absolutely be asking Commerce to look at whether companies received a distortive benefit from this package,” said the coalition’s lead attorney, Whitney Rolig.
Housing affordability concerns grow in US
According to the Canadian Chamber of Commerce, tariffs on foreign construction materials have already added up to US$6,000 to the cost of building a single-family home in the United States since 2018. If current measures remain, the cost could rise by another US$14,000 by 2027.
The US National Association of Home Builders warned that additional duties under a separate national security investigation could further raise prices.
“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,” the association stated.
With Canada’s share of the US lumber market having dropped from 35% to about 21% in recent years, both governments face renewed pressure to resolve the decades-long dispute.