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U.S. Posts Preliminary Softwood Lumber Duty Near 25% as B.C. Industry Decries ‘Broken’ Process

The update has sharpened calls for direct talks following years of stalled trade panels.

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The U.S. appeared to lower some tariffs on Canadian softwood lumber in an update from the Commerce Department, but uncertainty remains for the sector that has been battered by job losses in recent years.

Overview

  • The U.S. Commerce Department, which posted its preliminary rate Friday, set total duties just under 25%, below the current level of more than 35%, with a final decision expected in August.
  • British Columbia wood manufacturers said the softwood dispute system under CUSMA has failed and urged Ottawa and Washington to negotiate a deal instead of pursuing more litigation.
  • Premier David Eby said roughly $8 billion in duties held in a joint Canada–U.S. account could fund support for forest manufacturers on both sides of the border.
  • The BC Lumber Trade Council warned that an extra 10% duty added last fall could keep total charges near 35% even if the new rate is finalized.
  • Provincial officials pointed to years of mill closures, job losses, and higher U.S. housing costs from tariffs, and they are opening a forest trade office in the U.K. to diversify exports.