Canada will formally challenge U.S. softwood lumber duties under the Canada-United States-Mexico Agreement (CUSMA).
International Trade Minister Mary Ng confirmed the news in a statement released late Monday.
“Canada is disappointed that the United States continues to impose unwarranted and unfair duties on softwood lumber from Canada,” Ng said in the statement.
“The only fair outcome would be for the United States to meet its CUSMA obligations and cease applying unjustified duties on all Canadian softwood lumber products.”
The United States Department of Commerce recently lowered tariffs for most producers to 8.59 per cent.
While that is down from the 17.91 per cent rate imposed in late 2021, Ng said it does not go far enough.
“These unjustified duties on softwood products from Canada not only harm Canadian communities, businesses, and workers, but they amount to a tax on U.S. consumers, affecting housing affordability at a time of supply challenges and inflationary pressures,” said Ng.
Not all forestry companies on this side of the border will be paying the same tariff when it sends products to the United States.
New Brunswick-based J.D. Irving, Ltd., for example, will pay a tariff of 14 per cent compared to the 15.05 per cent it was paying.
Ng said Canada remains willing to work with the United States toward a negotiated solution to the long-running trade issue.
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