U.S. More Than Doubles Duties on Canadian Softwood Lumber

The United States Department of Commerce more than doubled countervailing duties on Canadian softwood lumber imports, raising the rate for most companies from 6.74% to 14.63%. When combined with recent anti-dumping duties of 20.56%, the total duty level for Canadian softwood now stands at 35.19%. The U.S. government based the decision on a determination that Canadian lumber is unfairly subsidized through stumpage fees on Crown land.

In response, British Columbia's Minister of Forests Ravi Parmar condemned the move as "absurd and reckless," arguing it would worsen affordability crises and increase construction costs for U.S. consumers. Prime Minister Mark Carney announced $1.2 billion in support for the forestry industry, including $700 million in loan guarantees and $500 million for market diversification. Canadian officials and industry groups intend to appeal the determination through legal channels, including the United States-Mexico-Canada Agreement.

The U.S. Lumber Coalition praised the hike, claiming the tariffs offset unfair subsidies. The coalition further urged President Donald Trump to impose additional tariffs under Section 232, leading to an order for Commerce Secretary Howard Lutnick to conduct a probe with findings due by the end of 2025. Following the announcement, lumber futures reached a three-year high. Danny Whalen, President of the Federation of Northern Ontario Municipalities, characterized the hike as "unfair and economically destructive," warning it would hit forestry workers in Northern Ontario hard.