Law & Government

U.S. raises duties on Canadian softwood lumber

Canadian softwood lumber exporters face updated U.S. anti-dumping and countervailing duty rates after the latest administrative review, adding pressure to an already strained cross-border trade relationship.

softwood lumber: U.S. raises duties on Canadian softwood lumber

Canadian softwood lumber exporters are facing updated U.S. duties after the U.S. Department of Commerce released the final results of its seventh administrative review of Canadian lumber shipments.

The review covers exports made during 2024 and sets new anti-dumping rates for Canadian producers and exporters.

The rates will apply once the final notice is published in the U.S. Federal Register, alongside the separate countervailing duties already determined in the review process.

What the new softwood lumber rates mean

The updated rates vary significantly by company, reflecting the U.S. Commerce Department’s calculations on alleged dumping and government assistance.

Company or groupAnti-dumping dutyCountervailing dutyCombined rate
Canfor Corporation17.00%14.11%31.11%
Resolute13.13%12.42%25.55%
West Fraser Mills Ltd.4.71%15.31%20.02%
All others10.64%14.11%24.75%

The combined figures shown in the table do not include any separate U.S. tariffs that may apply to particular wood products.

Canadian shipments can also face additional measures under U.S. national-security or trade authorities, depending on the product classification and whether the goods qualify for preferential treatment under CUSMA.

For companies, the duties affect the cash deposits required when lumber enters the United States.

The final financial impact can also depend on the treatment of earlier entries, subsequent reviews and whether legal challenges suspend liquidation of duties.

Canada challenges the broader lumber measures

The latest review is part of a much longer Canada-U.S. softwood lumber dispute that has repeatedly produced anti-dumping and countervailing duties.

On October 5, a CUSMA Chapter 19 panel released a decision involving Canada’s challenge to a U.S. countervailing-duty determination on Canadian softwood lumber.

The panel process is separate from the new administrative-review rates, but it forms part of Canada’s broader effort to contest the duties through trade-law mechanisms.

Canada’s trade department says the dispute has continued for more than two decades.

The 2006 Softwood Lumber Agreement, which had provided a period of greater predictability for exporters, expired in October 2015.

Canadian officials have continued to argue that the U.S. duties are unjustified and have maintained that provincial timber-pricing systems do not amount to prohibited subsidies. U.S. authorities and American lumber producers have taken the opposite position in the trade proceedings.

Why the decision matters to Canadian exporters

The United States is the main foreign market for many Canadian lumber producers, making changes to border duties especially important for mills in British Columbia, Alberta, Ontario, Quebec and Atlantic Canada.

Higher duties can reduce margins, affect contracts and make it harder for exporters to compete with U.S. suppliers.

The effect is not always passed directly to consumers, but additional import costs can influence wholesale lumber prices and the economics of residential construction.

The duties also create uncertainty for investment and production planning.

A mill may face one rate for its own shipments and another rate for entries covered by the “all others” category, while future reviews can change the cash-deposit requirements again.

That uncertainty comes as Canadian exporters are already dealing with a wider Canada-U.S. tariff standoff.

The two countries have imposed or maintained tariffs affecting steel, aluminum, autos, wood products and other goods, while Ottawa has introduced countermeasures against selected U.S. imports.

What happens next

The next practical step is publication of the final anti-dumping notice in the Federal Register. U.S. Customs and Border Protection can then administer the updated cash-deposit rates for affected imports.

Canadian companies and trade groups may pursue further legal or administrative challenges, including proceedings under CUSMA or before U.S. trade courts.

Those processes can take years and do not automatically erase duties while the dispute continues.

Exporters should confirm the applicable rate with customs brokers and trade counsel before relying on a published company average.

The precise treatment depends on the product, exporter, entry date, country-of-origin rules and any applicable exclusions.

The review does not end the Canada-U.S. lumber dispute.

It adds another set of rates to a system that remains subject to future administrative reviews, court decisions and possible negotiations between Ottawa and Washington.

Frequently Asked Questions

What are the new U.S. duties on Canadian softwood lumber?

The combined rates listed in the seventh administrative review are 31.11 per cent for Canfor, 25.55 per cent for Resolute, 20.02 per cent for West Fraser and 24.75 per cent for all other exporters, before any separate tariffs that may apply.

When will the updated lumber duties take effect?

The final anti-dumping rates apply once the relevant notice is published in the U.S. Federal Register and administered by U.S. Customs and Border Protection.

What is the difference between anti-dumping and countervailing duties?

Anti-dumping duties address allegations that goods were sold in the United States below normal value, while countervailing duties address alleged benefits from government subsidies.

Do the new rates apply to every Canadian lumber shipment?

Not necessarily. The applicable rate depends on the exporter, product classification, entry date, country-of-origin rules and any additional U.S. tariff or exclusion that applies.

Can Canada challenge the U.S. lumber duties?

Canada can use trade-law and court processes, including CUSMA dispute mechanisms, but those proceedings may take time and do not necessarily suspend duties while a case is pending.

Fact-Checked: Key rates, dates and procedural developments were checked against Global Affairs Canada and U.S. Federal Register materials.

Disclaimer: Duty treatment can vary by product and shipment, so exporters should obtain current advice from a customs broker or qualified trade professional.

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