U.S. Places Tariffs on Canadian Lumber

Photo courtesy of Tony Hisgett
Photo courtesy of Tony Hisgett

The Trump administration placed tariffs up to 24 percent on Canadian lumber shipped to the United States early this week.

U.S. Secretary of Commerce Wilbur Ross announced the preliminary determination in the countervailing duty (CVD) investigation of softwood lumber from Canada.

“The Department of Commerce determined a need to impose countervailing duties of roughly one billion dollars on Canadian softwood lumber exports to us,” says Ross. “This is not our idea of a properly functioning Free Trade Agreement.”

Commerce preliminarily determined that exporters of softwood lumber from Canada received countervailable subsidies of 3.02 percent to 24.12 percent.

In 2016, imports of softwood lumber from Canada were valued at an estimated $5.66 billion.

As a result of the determination, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits based on these preliminary rates.

Also, since Commerce determined that critical circumstances exist, certain companies will be subject to the retroactive collection of cash deposits.

Unless the final determination is postponed, Commerce is currently scheduled to announce its final CVD determination on September 7, 2017.

This final determination will be based on the verification of the information provided to the Department for the preliminary ruling, comments by the parties and further analysis.

If Commerce makes an affirmative final determination of subsidization and the U.S. International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order.

If Commerce makes a negative final determination of subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.


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