Prime Minister Mark Carney greeted sawmill employees in West Kelowna, British Columbia on Aug. 5 before announcing supports for the forestry sector. Photo by Darryl Dyck / The Canadian Press

The U.S. lumber industry says new financial support pledged by Canada to domestic forestry companies risks deepening the neighbours’ long-running trade dispute, and may result in yet more import taxes.

Last week Prime Minister Mark Carney promised as much as $1.2 billion in loan guarantees , grants and contributions for Canadian sawmills to pursue product development and market diversification — in response to what he said were unjustified U.S. import taxes.

Three days later, the United States Department of Commerce separately confirmed it would more than double combined anti-dumping and c

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