Duty Rates on Canadian Softwood Lumber

By Youmy Han

The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, issued the following statement regarding the second administrative review by the U.S. Department of Commerce of its anti-dumping and countervailing duty orders on certain softwood lumber products from Canada:

“The United States has always relied on Canadian lumber products to meet its domestic needs for high-quality building materials—and with the overwhelming demand from construction markets over the last year, this has never been more true.

“The U.S. Department of Commerce’s preliminary results of its second administrative review suggest its intention to significantly increase duties on Canadian softwood lumber later this year. This is entirely unjustified and will hurt consumers, businesses, and workers on both sides of the border.

“U.S. duties on Canadian softwood lumber products are a tax on the American people. They make housing less affordable for Americans and hinder economic recovery from the COVID-19 pandemic. 

“The Government of Canada will always vigorously defend its forestry sector, which supports hundreds of thousands of good, middle-class jobs for Canadians across the country. We will keep challenging these unwarranted and damaging duties through all available avenues. We remain confident that a negotiated solution to this longstanding trade issue is not only possible but in the best interest of both our countries.”

Quick facts

  • The announcement reflects preliminary results for the second administrative review and does not yet take effect. The U.S. Department of Commerce is not expected to issue final results until November 2021.
  • The U.S. Department of Commerce conducts an annual review of anti-dumping and countervailing duty orders. The annual review process is similar to the process used for initial investigations but applies only to companies subject to review.
  • The preliminary results of the second administrative review propose a combined countervailing and anti-dumping duty rate of 18.32%, more than twice the current combined rate of 8.99%.

 

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