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Published: August 20, 2024
Canadian Trade Minister Mary Ng criticized the U.S. Department of Commerce for increasing tariffs on softwood lumber, stating that this move is unfair.
The minister mentioned that the United States has decided to impose a significant increase in tariffs on softwood lumber imported from Canada, from 8.05% to 14.54%.
She also said in a press release: “The U.S. tariffs imposed on softwood lumber are causing unjust harm to consumers and producers on both sides of the border, which is an unfair decision that must be reviewed.”
These statements came as the latest escalation in the exchange of accusations between the two countries, which the Canadian government described as obstructing serious efforts aimed at improving housing costs and supplies.
The increase in the tariff rate has sparked angry reactions from the government and industry in British Columbia.
The British Columbia Minister of Forests, Bruce Ralston, stated in a press release
She added that the only solution is to end the unfair tariffs on softwood lumber.
According to the Tariff Act, the U.S. Department of Commerce determines whether goods are sold below fair value or benefit from subsidies provided by foreign governments.
The Canadian provinces producing timber set what are called cut fees for timber harvested from crown land.
It was mentioned that American producers, who are forced to pay market prices, consider this to constitute an unfair subsidy.
It is worth noting that Canadian lumber producers have paid over $9 billion in tariffs, which are being held in escrow until this dispute is resolved, and on the other hand, the British Columbia Lumber Trade Council stated that the increase could not come at a worse time, exacerbating already difficult circumstances.
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