NLBMDA weighs in on Canadian duty dustup
According to the NLBMDA, the Department of Commerce plans to announce a forthcoming adjustment the countervailing duty applied to Canadian softwood lumber from 6.74% to 14.38%.
The hike comes on the heels of the Commerce Department's statement in early March indicating that the anti-dumping duty rate would also be raised. (As of now, the rate increases are preliminary and won't be finalized until August or September.)
If adopted, says NLBMDA, the combined duty rate for Canadian softwood lumber would more than double to 34.45%. Amid ongoing litigation, the Commerce Department may modify its preliminary determination prior to the final determination.
The duties, which are separate from the tariffs proposed by President Trump, would constitute a different line item altogether.
The NLBMDA says that while lumber has, for now, been spared from additional tariffs for USMCA-compliant goods from Canada and Mexico, "the new duties proposed by the Commerce Department will pass down increased costs to consumers and impact small business growth." It adds that additional tariffs may still be in the cards and are subject to the whim of President Trump's orders. NLBMDA says it has submitted formal comments to the Commerce Department, making the case that additional tariffs on Canadian lumber "would be duplicative in nature and counterproductive to the administration’s broader policy objectives."
To help its members navigate the tumultuous, quickly evolving trade landscape, NLBMDA says it has been meeting with lawmakers, trade association partners and other stakeholders to urge the administration to pause further measures that could increase the cost of lumber and building materials.
On April 2, NLBMDA President Jonathan Paine and Government Affairs Coordinator Matthew Delaney met with Québec’s Minister for the Economy, Christopher Skeete, to discuss the softwood lumber duty rate situation.
Minister Skeete shared:
“Meeting the National Lumber and Building Material Dealers Association allowed us to discuss the ongoing litigation. Taxes on softwood lumber have increased costs for consumers and builders while significantly altering trade. Québec remains steadfast in its commitment to supplying high-quality, affordable and environmentally sustainable wood products to our partners and allies.”
Paine said:
“NLBMDA thanks Minster Skeete and the entire Québec delegation for the opportunity to discuss the status of softwood lumber negotiations and the tariff dispute between the United States and Canada. NLBMDA reaffirmed its position that a long-term agreement is needed to help stabilize the market and minimize price uncertainty in residential construction, which is contingent on our partnership with Canadian suppliers. NLBMDA is committed to working with stakeholders on both sides of border to advocate on behalf of the LBM industry.”
