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U.S. Doubles Softwood Lumber Duties, Sparks Trade Outrage

8/9/2025

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Summary

U.S. Raises Lumber Duties

The U.S. Department of Commerce has sharply raised countervailing duties on Canadian softwood lumber to 35.19%, a significant jump from 14.4%. This move has sparked outrage among industry leaders in British Columbia and Ontario, who warn of dire consequences for jobs and housing costs in the U.S. They are calling for a negotiated solution to this enduring trade conflict.

Summary

Carney Supports Lumber Industry

Prime Minister Mark Carney unveiled a robust $1.2 billion support package for Canada's softwood lumber industry, designed to lessen dependence on the U.S. market. The initiative features $700 million in loan guarantees and $500 million dedicated to exploring new markets, responding to escalating U.S. tariffs that jeopardize jobs and economic stability.

History

Historical Context

The U.S.-Canada softwood lumber dispute began in 1982, with the U.S. claiming unfair subsidies in the Canadian lumber industry. In 2006, a settlement awarded Canada $5 billion, yet tensions resurfaced with a recent 35.19% duty increase. This ongoing conflict threatens economic stability in Canadian provinces like British Columbia and Ontario, prompting Prime Minister Mark Carney to propose a $1.2 billion support package.

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U.S. Raises Lumber Duties

The U.S. Department of Commerce has sharply raised countervailing duties on Canadian softwood lumber to 35.19%, a significant jump from 14.4%. This move has sparked outrage among industry leaders in British Columbia and Ontario, who warn of dire consequences for jobs and housing costs in the U.S. They are calling for a negotiated solution to this enduring trade conflict.

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