The US Department of Commerce published its preliminary decision taken in the second administrative review of softwood lumber imports from Canada and again confirmed its plans to double tariffs to 18.32%. This is according to reports by numerous North American media.
While the Department’s recommendation has sparked criticism from the Canadian government and the country’s industry, the timber industry south of the border hails the decision, as the internet platform cbc.ca reports.
Analysts of various industry media expect that this decision will increase producers’ costs and reduce their profits. However, they think it is unlikely that consumer prices of wood products will be affected.
Industry representatives and politicians have different opinions on the matter: In a press release, Mary Ng, Canadian Minister of Small Business, Export Promotion and International Trade, calls US tariffs on Canadian softwood lumber products a tax for the American people.
According to Susan Yurkovich, President of the BC Lumber Trade Council, raising tariffs will hurt American consumers, who are confronted with a market on which supply cannot keep up with demand. Her assessment of the US’s decision was covered in the newsroom of the internet platform bclumbertrade.co.
Jason Brochu, Co-Chair of the U.S. Lumber Coalition, on the other hand, welcomes the commitment of the Department of Commerce on the enforcement of trade laws against “subsidized and unfairly traded” Canadian lumber imports.
Since this is a preliminary tariff, the current tariffs will continue to apply until the final rates are published, which is expected to happen in November.
