The Trump Administration is planning to impose a 20% tariff on Canada’s softwood lumber.
Trump first made the comment on imposing a tariff Monday, during a meeting with conservative journalists.
The Trump statement was first brought to attention by reporters from Breitbart News and One America News:
TRUMP: “We’re going to be putting a 20% tax on softwood lumber coming in — tariff on softwood coming into the United States from Canada"
— Charlie Spiering (@charliespiering) April 24, 2017
BREAKING: President Trump to put a 20% tax on soft lumber entering the US from Canada
— Trey Yingst (@TreyYingst) April 24, 2017
It was then confirmed by US Commerce Secretary Wilbur Ross later confirmed that the US was planning the tariff:
$5 billion worth of Canadian softwood lumber exports will be effected.
Said Ross, “It’s about 31.5 percent of the total U.S. market, so it’s a pretty big deal in terms of the Canadian relationship.”
According to CNBC, here are the rates that will be paid by specific softwood lumber producers:
“A Commerce Department fact sheet on the pending announcement seen by Reuters shows that West Fraser Mills will pay the highest duties at 24.12 percent, followed by Canfor Corp at 20.26 percent.
Resolute FP Canada Ltd will pay a 12.82 percent duty, while Tolko Marketing and Sales and Tolko Industries will pay a 19.50 percent duty and J.D. Irving Ltd, will pay 3.02 percent.
All other Canadian producers face a 19.88 percent duty, according to the document.”
The US dollar is up .34% against the loonie.
Canada and the United States have been in a dispute over softwood lumber for decades. Temporary deals have been struck, but a lasting compromise has proven elusive.
The United States is growing increasingly displeased, as wood prices have increased over 20% since October 2016, when the latest softwood deal fell apart.
The tariff could cause the cost of home building in Canada could increase, as softwood lumber producers could be forced to raise prices in Canada to offset lower profits in the United States.
Photo – YouTube