The Canadian Minister of International Trade criticized the U.S. Department of Commerce for nearly doubling tariffs on softwood lumber, stating that this step is unfair and unjustified.

Minister Mary Ng said that the United States significantly increased tariffs on softwood lumber from Canada, from 8.05% to 14.54%.

Ng stated in a press release, "The unfair tariffs imposed by the United States on softwood lumber unjustly harm consumers and producers on both sides of the border."

This is the latest attack in the exchange of accusations that Ottawa describes as an obstruction to efforts aimed at improving housing costs and supply.

The increase in the overall tariff rate has sparked strong reactions from the government and industry in British Columbia.

BruceRalston, the Minister of Forests in British Columbia, said in a press release, "We have said from the beginning and we will say it again now: the only solution is to end the unfair tariffs on softwood lumber."

The U.S. Department of Commerce, under tariff laws, determines whether goods are sold below fair value or are benefiting from subsidies provided by foreign governments.

Canadian provinces producing timber set what are known as cutting fees for timber cut from Crown land. American producers, who are forced to pay market prices, claim the amounts amount to unfair support.

Canadian lumber producers have already paid over $9 billion in tariffs, which are being held in escrow until this dispute is resolved.

The British Columbia Lumber Trade Council stated that the increase could not have come at a worse time, exacerbating already difficult conditions.

Kurt Nikidet, Chair of the British Columbia Lumber Trade Council, said in a press release, "The increase in U.S. tariffs on lumber products from British Columbia will worsen the extremely challenging conditions faced by British Columbia producers and will affect manufacturing operations, jobs, and communities throughout the province."

Andy Riley, Chair of the Independent Wood Processors Association in British Columbia, stated that the softwood dispute unjustly harms small family-owned businesses "that are innocent bystanders in this long-standing dispute between American landowners and international lumber companies."

A press release stated that its members purchase their timber or logs in the open market like U.S. companies do. The association calls on Ottawa to negotiate a solution.

Conservative Leader Pierre Poilievre criticized Prime Minister Justin Trudeau's Liberal government for not listening to the forest sector and failing to defend Canadian lumber at the diplomatic and industrial level in Washington, D.C.

A CIBC analyst's note on lumber tariffs stated that it is unlikely that Ottawa or the Biden administration will focus on resolving the issue as a trade dispute since it is not the main cause of job losses in the industry in Canada. It noted that job losses are linked to decreased demand for lumber and fiber shortages in British Columbia.

Canada is using litigation, challenging the rates through the Canada-United States-Mexico Agreement (CUSMA) dispute resolution panel.

Ottawa has previously succeeded in arguing in World Trade Organization dispute settlement panels that the lumber tariff system is not a subsidy. Last year, the NAFTA dispute settlement panel found that aspects of how the U.S. calculates tariffs are inconsistent with federal law.

The fifth administrative review by the U.S. Department of Commerce of the tariffs issued on Tuesday was slightly higher than the initial rate of 13.86% announced in February.

The new rate is likely to remain in effect until mid-August 2025 when the sixth administrative review rates are applied.

Industry in America has praised the move, including the American Lumber Coalition, which stated that Canada's actions are deepening market downturn cycles.

Andrew Miller, Chair of the coalition, said in a press release, "The United States does not need unfair Canadian lumber imports to sustain current levels of housing construction."

Ng stated that it is in the interest of both Canada and the United States to find a permanent solution to the dispute.

She added, "We will always fight for the best interests of Canadians and we will continue to use all available means to vigorously defend the workers, businesses, and communities that depend on softwood lumber for their livelihoods."