This escalation follows President Trump’s threats of additional tariffs, citing a national security investigation into wood imports from Canada.

Previously, Canadian lumber faced countervailing and anti-dumping duties of 14.4%, which will now rise by 20 percentage points.

The trade dispute centers on U.S. allegations that Canadian sawmills benefit from government subsidies through low stumpage rates, a claim Canada disputes.

Kurt Niquidet, president of the British Columbia Lumber Trade Council, argues that Canada’s stumpage system is competitive and market-driven.

The impact of these tariffs is already being felt, with Canfor Corp. closing sawmills in British Columbia, resulting in job losses for 500 workers.

The National Association of Home Builders in the U.S. opposes the tariffs, arguing they will raise material costs and disrupt supply chains.

This ongoing dispute dates back to the 1980s, with the last agreement expiring in 2015 and duties being imposed since 2017.

The U.S. has announced a significant increase in duties on Canadian softwood lumber, raising them to 34.45%, which intensifies a long-standing trade dispute.

Niquidet highlighted that Canadian softwood lumber accounts for 24% of the U.S. market, indicating the difficulty in finding quick replacements.

British Columbia Premier David Eby criticized the new duties as harmful to forest workers and warned they would increase housing costs for American consumers.

American homebuilders estimate that the tariffs could raise the average home price by approximately $9,200, exacerbating housing affordability issues.

The Canadian lumber industry is already under pressure from rising input costs, wildfires, and a mountain pine beetle infestation affecting forests.