The U.S. Department of Commerce has finalized a decision to significantly increase countervailing duties on Canadian softwood lumber imports. The new duty rate for most Canadian companies will rise to 14.63 percent, up from 6.74 percent. This change follows the department's determination that Canadian softwood lumber is being unfairly subsidized.

In addition to the countervailing duties, anti-dumping duties have also recently increased to 20.56 percent. This brings the total duty on Canadian softwood lumber to 35.19 percent. The Department of Commerce has instructed U.S. Customs and Border Protection to begin collecting these duties.

Business groups in British Columbia are expressing concern over the impact of these increased duties. Ravi Parmar, British Columbia’s Forests Minister, criticized the decision as “absurd and reckless,” stating it will exacerbate the affordability crisis in both Canada and the U.S. He added, “I have instructed our province’s legal representation to work with our federal partners to appeal this determination. We will use every legal avenue available to fight back.”

Kurt Niquidet, president of the B.C. Lumber Trade Council, stated that the decision will place unnecessary pressure on forestry-dependent regions in Canada and will increase construction costs for builders in the U.S. He emphasized the need for both Canadian and U.S. governments to prioritize resolving the long-standing softwood lumber dispute. “In the absence of a negotiated settlement, BCLTC will continue working closely with the Government of Canada and industry partners to defend Canadian interests through all available legal channels, including proceedings under the United States-Mexico-Canada Agreement,” Niquidet said.

The B.C. Council of Forest Industries has called for the provincial government to take action. They suggest streamlining permitting processes, activating provincial timber sales, and removing cross-ministry bottlenecks. Kim Haakstad, president of the council, stated, “With the right policy tools, B.C. can send a strong message that it is committed to creating a climate where primary and secondary forest manufacturers want to invest, ensuring a steady supply of wood products for B.C., Canada, and beyond.”

In response to the challenges facing the industry, Prime Minister Mark Carney recently visited British Columbia, announcing $700 million in loan guarantees for the sector and an additional $500 million for long-term support aimed at helping companies diversify their export markets and develop new products.