After a six-month investigation, the U.S. Department of Commerce found that Canada has been subsidizing the sale of softwood lumber into the United States, causing the department to impose new tariffs on Canadian softwood imports.
The subsidized lumber has distorted the U.S. softwood lumber market, according to Sen. Ron Wyden (D-OR), ranking member on the Senate Finance Committee.
“Unfairly traded softwood lumber from Canada has for decades hurt mill towns and American millworkers in Oregon and across the country,” Wyden said. “Today’s announcement sends the message that help is on the way. But the fight to save mill jobs cannot end here – America needs continued tough trade enforcement and a durable solution to the Canadian policies that distort trade and hold American lumber businesses back from fully realizing their potential.”
The Commerce Department investigation, which began in November 2016, found that Canada has provided subsidies at a countrywide rate of approximately 20 percent to its softwood lumber producers.
Now, U.S. Customs and Border Protection will begin requiring importers to pay cash deposits or post bonds equal to the estimated amounts of unfair subsidies.
The Canadian government took exception to the ruling and tariff.
“The Government of Canada disagrees strongly with the U.S. Department of Commerce’s decision to impose an unfair and punitive duty. The accusations are baseless and unfounded,” Jim Carr, Canadian minister of natural resources, and Chrystia Freeland, Canadian minister of foreign affairs, said in a joint statement. “This decision will negatively affect workers on both sides of the border, and will ultimately increase costs for American families who want to build or renovate homes.”