28 June, 2017
The U.S. Department of Commerce in a preliminary determination Monday said it has calculated that Canfor is selling product in the U.S.at 7.72 percent less than fair value, Resolute FP Canada at 4.59 percent, Tolko Industries at 7.53 percent and West Fraser at 6.76 percent.
"Adding this new tariff to the proposed 20 percent countervailing lumber duty that the Trump administration slapped on imports of lumber this spring means that total tariffs would be a whopping 27 percent". Canada, which denies it subsidizes producers, said earlier this month it would give C$867 million ($654 million) in aid to the domestic industry.
Canfor will pay the highest of BC producers, at 7.72%, while West Fraser will pay duties on 6.76%.
"The homebuilders definitely care but for the most part have believed that these costs will be passed along to the end users - in this case, the home buyers", Miller said.
U.S. Lumber Coalition spokesman Zoltan van Heyningen said the anti-dumping decision is preliminary and additional investigation will be carried out by the U.S. Commerce Department.
Final determinations by the Commerce Department are expected in late 2017.More news: Approval rating for President Trump at lowest since inauguration, CBS poll says
It will instruct US Customs and Border protection to collect cash deposits from importers of softwood lumber from Canada based on these preliminary rates.
USA lumber stocks were mixed at market open Tuesday in the wake of the Commerce Department's announcement. That is because most of the trees in Canada are on publicly owned land, in contrast to the United States, where most timber is on private property and companies pay market rates to harvest it, USA producers say. The duties imposed "are based on a flawed rationale that is damaging to workers, communities and consumers in Canada and the U.S". The alternative is to be subject to USA legal processes created to favour a few select timber barons.
Canada has denied the U.S.'s allegations, and Prime Minister Justin Trudeau at one point said he would carefully consider retaliatory measures against the U.S. The U.S. a year ago imported more than $5 billion worth of softwood lumber from Canada. -Canada lumber trade dispute or to boost the American economy.
Monday's announcement comes in the wake of countervailing duties placed on Canadian softwood lumber imports in April. Industry experts say the punitive duties could linger throughout 2018 and possibly into 2019, until Canada and the United States negotiate a solution. "This was proven in the last round of litigation and we fully expect it will be again".
The Conference Board of Canada has said USA softwood lumber duties paid at current export levels will cost Canadian producers $1.7 billion a year and cut about 2,200 jobs until a softwood settlement is reached. She says the two countries should be working together to improve the industry, North America-wide.