U.S. Slaps New 10% Tariff on Canadian Softwood Lumber
The U.S. has imposed a new 10% duty on imports of softwood timber and lumber from Canada, effective October 14. This comes as another blow to the Canadian lumber industry, which already faces high import taxes from the American Express of duties. The move has been criticized by industry groups and analysts.
U.S. President Donald Trump has authorized these new tariffs, which are in addition to previously applied duties. The total import taxes on Canadian softwood lumber now exceed 45%. The U.S. Secretary of Commerce, Wilbur Ross, led the investigation that resulted in these tariffs.
The U.S. claims that these measures are necessary to protect its national security, as per a report by Secretary Howard Lutnick. However, the Canadian Forest Product Sector argues that the tariffs are unjustified and disrupt North American supply chains. The British Columbia Lumber Trade Council also slammed the new tariffs as 'misguided and unnecessary'.
Analysts expect the new levy to put further pressure on Canadian lumber producers. RBC's Matthew McKellar predicts more strain on an already weak market. Additionally, a 25% levy has been imposed on imports of kitchen cabinets and vanities, with rates set to increase in 2026.
Canada has dropped two legal challenges against the U.S. duties on its softwood lumber earlier this month. Despite this, the new tariffs are likely to further impact the Canadian lumber industry. The industry and its supporters continue to argue against these measures, highlighting the potential harm to North American trade relations.
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