August 8,2025
RED FM News Desk
The United States has raised countervailing duties on Canadian softwood lumber, bringing the total tariff rate to 35.19 percent.
The U.S. Department of Commerce announced the decision on Friday.
While the increase in duties was expected, it was met with immediate criticism from industry and political leaders in British Columbia and Ontario, who view it as yet another example of unfair treatment from Canada’s largest and most important trade partner.
B.C.’s Forests Minister Ravi Parmar described the move as “absurd and reckless” in a social media statement, warning that the additional duties will only deepen the housing affordability crisis on both sides of the border.
The B.C. Council of Forest Industries called the new tariffs “crippling” for Canadian workers, while the B.C. Lumber Trade Council highlighted how higher fees will raise costs for U.S. construction companies reliant on softwood imports to build new homes.
“This decision will hurt communities on both sides of the border,” said trade council president Kurt Niquidet. “What is needed now is a stable, negotiated agreement that supports jobs, trade, and affordable housing.”
The Ontario Forest Industries Association echoed these concerns, citing a Canadian Chamber of Commerce report that tariffs have already increased the cost of building a single-family home in the U.S. by up to US$6,000.
The softwood lumber dispute between Canada and the U.S. is longstanding, predating the current U.S. administration by decades.
In Canada, lumber-producing provinces charge stumpage fees for timber harvested from Crown land—a system U.S. producers, who pay market rates, view as an unfair subsidy. The U.S. Department of Commerce has agreed with this perspective and imposed duties based on the belief that Canadian lumber is being sold below fair market value in the U.S.
Over the past decade, rising duties have heavily impacted Canada’s lumber industry, especially in B.C., where hundreds of jobs have been lost and many mills have closed or reduced operations, partly due to restricted access to U.S. markets.
Loading ...
