President Donald Trump has announced plans to impose a 25% tariff on lumber and forest product imports, including those from Canada, with implementation expected around April 2, 2025.
This proposed tariff would be in addition to the existing 14.54% duty on Canadian softwood lumber, bringing the total tariff to nearly 40%.
The U.S. Department of Commerce increased tariffs on Canadian softwood lumber from 8.05% to 14.54% in August 2024.
The National Association of Home Builders (NAHB) has expressed concern that the combined tariffs could significantly raise construction costs and exacerbate housing affordability issues in the United States.
The Canadian government has criticized the tariffs, arguing that they are unwarranted given that U.S. domestic production meets only about 70% of its homebuilding lumber needs, with Canadian imports filling the gap.
The softwood lumber dispute has been a longstanding trade issue between the two countries, with multiple rounds of tariffs and negotiations over the years.
The proposed tariffs are part of a broader trade strategy by the Trump administration, which includes potential levies on other imports such as automobiles, semiconductors, and pharmaceuticals.
As the situation develops, stakeholders in both countries are closely monitoring the potential economic impacts of the proposed tariffs.