Canadian forestry faces 'massive threat' from double whammy of tariffs and new duties: B.C. premier

Softwood lumber producers in Canada are bracing for a double whammy of tariffs of up to 25 per cent, which could be in effect as soon as Tuesday, as well as a new levy imposed by the U.S. Department of Commerce, which could come into effect in August.

British Columbia Premier David Eby called the news a "massive threat" to the province's forestry sector.

The levy is characterized by the United States as an anti-dumping measure and is part of a decades-long dispute between Canada and the United States over how softwood lumber is priced.

The new rate, announced by the U.S. Department of Commerce, is 20.07 per cent, up nearly three times from the previous rate set three years ago. That is in addition to a 6.74 per cent countervailing duty also in place, plus whatever tariffs may come into effect.

The announcement also comes shortly after Trump ordered a probe into U.S. lumber imports, signing a memo for a national security investigation to be launched into lumber and lumber products brought into the country, with a White House official arguing that reliance on imported lumber represents a possible national security risk.

Eby characterized the announcements as "biased" and called U.S. President Donald Trump's ongoing targeting of Canadian goods as "unwarranted attacks, and not how allies treat each other."

"The U.S. Department of Commerce's announcement today will impact all Canadian companies selling lumber to the United States, when and if the decision is confirmed later this summer. American homes will be more expensive to build, and hardworking people in our province will bear the brunt of these unwarranted duties. Both Canadians and Americans need an end to this trade dispute," he said.

Hundreds of jobs have already been lost across the province in recent years as mills have shuttered and scaled back, in part a response to a lack of access to U.S. markets.

The B.C. Lumber Trade Council says in a statement that the latest hike is unjustified and will further harm forestry workers and communities in Canada and further burden homebuilders and consumers in the United States. 

Council president Kurt Niquidet says it is deeply disappointing that the U.S. continues to impose such trade protection measures. 

That said, the dispute between Canada and the United States over softwood lumber prices extends beyond Trump.

Softwood is the term used for board products made of conifer trees, such as spruce and pine, which are generally more flexible than hardwood and are used in the construction of homes and buildings.

In Canada, the bulk of softwood exports goes to the United States, representing over half the market for the more than $10 billion industry, which is largely centred in B.C.

In Canada, lumber-producing provinces set so-called stumpage fees for timber harvested from Crown land, a system that U.S. producers — forced to pay market rates — consider an unfair subsidy.