U.S. plans to nearly triple anti-dumping duty on Canadian softwood as tariffs loom

VANCOUVER — A proposed anti-dumping duty from the United States on Canadian lumber is the latest jab in the ongoing softwood dispute creating even more uncertainty for the sector, says the head of an industry group.

Kurt Niquidet, president of the BC Lumber Trade Council, said Monday companies are putting decisions on hold following the latest duty announcement and the threat of U.S. tariffs that could total more than 50 per cent for Canadian lumber exports by this summer.

He said uncertainty within the industry does not create a good business environment in Canada.

“What I’ve been hearing is investment decisions and some of the operational decisions can be on hold because of this uncertainty,” he said in an interview.

Niquidet made the comments Monday, the same day the U.S. Department of Commerce revealed it wants to almost triple the anti-dumping duties on Canadian softwood lumber, something British Columbia’s premier called a “massive threat” to the province’s forestry sector.

The American department issued a preliminary anti-dumping rate of 20.07 per cent, up from 7.66 per cent set three years ago, which is in addition to countervailing duties of 6.74 per cent.

That brings the total for potential levies to almost 27 per cent, while the industry is still facing U.S. President Donald Trump’s threat of 25 per cent tariff on Canadian goods on Tuesday.

The BC Lumber Trade Council said in a statement the proposed hike is unjustified and will harm forestry workers and communities in Canada and further burden homebuilders and consumers in the United States.

Niquidet said industry representatives have an opportunity for input on the preliminary report before a final decision is made, likely in August, and the new duties are implemented, adding that he expects the final decision to be appealed.

“There are going to be impacts on both sides of the border. So, if I’m talking to someone in the U.S. I would say that if you go into your local Home Depot, you’re going to see the price of lumber products increase as a result of this,” he said.

“In British Columbia, the forest sector is B.C.’s second largest export. And so, this has a possibility of really impacting our exports and that has ripple effects throughout the forestry supply chain and can impact workers and communities in British Columbia.”

Anti-dumping duties are imposed because the U.S. claims Canadian producers are selling softwood lumber below market value, while the countervailing duties are in place to counter what the U.S. sees as subsidized Canadian lumber.

B.C. Premier David Eby said in a statement that the government denounces the increase and adds that the move will impact all Canadian companies selling lumber to the United States.

“B.C. has long maintained that any and all duties on softwood lumber are unjustified, and these anti-dumping duties are based on a biased calculation,” he said.

Eby said increasing the anti-dumping duties is compounding challenges for an industry that is already facing tariff threats and Trump’s order this past weekend to initiate a separate investigation of imported forest products.

Trump signed executive orders to initiate a national security investigation into lumber imports into America, and ordered that steps be taken to increase the domestic supply of timber.

The U.S. president said on Monday that the tariffs on Canadian imports would go ahead on Tuesday as planned.

In the same preliminary decision Monday, two B.C. based companies had their anti-dumping duties increased.

The rate for Canfor is proposed to jump to 34.61 per cent, up from it’s current level of 10.44 per cent. West Fraser’s anti-dumping duty rate is expected to climb to 9.48 per cent, up from the current 5.04 per cent.

Eby said Canada will be stronger if people stand together and respond with strength.

“These are unwarranted attacks, and not how allies treat each other,” he said.

The Canada-U. S. softwood lumber dispute has been dragging on for decades, with the Americans claiming Canadian producers sell below market value and that the industry is subsidized.

This report by The Canadian Press was first published March 3, 2025

Ashley Joannou, The Canadian Press