Canadian Lumber Duties Jump Above 25% — With Higher Levies to Come Soon

The U.S. Commerce Department has announced it is nearly tripling its anti-dumping duties on Canadian lumber imports from 7.66% to 20.56% following its annual review of existing tariffs.

“Commerce will now instruct U.S. Customs and Border Protection to begin collecting duties at the rates outlined in Commerce’s final results,” the U.S. International Trade Administration said in a press release.

The anti-dumping duties are in addition to current countervailing duties set at 6.74%, which would bring the total lumber duties above 27%. However, the countervailing duty rate is expected to move higher shortly, with the Commerce Department scheduled to announce its final administrative review of the countervailing order on Aug. 8. Commerce issued a preliminary determination on countervailing duties earlier this year that would raise the countervailing duty rate to 14.38%.

Moreover, President Trump in March directed the Commerce Department to launch a separate investigation under Section 232 of the Trade Expansion Act, which will examine whether lumber imports represent a threat to national security. Such a finding could result in higher lumber tariffs above the combined anti-dumping and countervailing duties.

Although NAHB is disappointed by this decision to raise lumber tariffs, it is part of the regularly scheduled review process the United States employs to ensure adequate relief to American companies and industries impacted by unfair trade practices.

For years, NAHB has been leading the fight against lumber tariffs because of their detrimental effect on housing affordability. In effect, the lumber tariffs act as a tax on American builders, home buyers and consumers.

With housing affordability already near a historic low, NAHB continues to call on the Trump administration to carefully consider how placing additional tariffs on lumber and other building materials will raise housing prices and impact housing supply. We are also urging the administration to move immediately to enter into negotiations with Canada on a new softwood lumber agreement that will provide a fair and equitable solution to all parties and eliminate tariffs altogether.