New Tariffs Imposed on Canadian Lumber by U.S. President Trump
U.S. President Donald Trump has introduced new tariffs that are expected to increase pressure on Canadian softwood lumber and furniture producers. The tariffs, outlined in a presidential proclamation, include a 10% duty on softwood timber and lumber imports and a 25% levy on kitchen cabinets, vanities, and other upholstered wooden products.
Tariff Details and Timeline
The new tariffs are scheduled to take effect on October 14th. The rate applied to kitchen cabinets and vanities is slated to increase to 50% on January 1st. Simultaneously, the levy on other upholstered wooden products will rise to 30% at the start of the new year. These increases will occur unless a trade agreement is reached between Canada and the United States.
The White House has clarified that these new tariffs are separate from the "Liberation Day" tariffs announced earlier in April. However, they will be added to any existing duties already applied to imported wood products.
Justification and Rationale
The tariffs follow a report delivered to Trump by U.S. Commerce Secretary Howard Lutnick. Trump stated that Lutnick's probe revealed that wood products were being imported into the U.S. "in such quantities and under such circumstances as to threaten to impair the national security of the United States." The proclamation sets an October 1, 2026, deadline for Lutnick to update Trump on the status of wood product imports, enabling the president to determine if additional duties on hardwood timber or lumber are needed to address a national security threat.
Industry Response and Concerns
The British Columbia Lumber Trade Council has labeled the new tariffs as "misguided and unnecessary." Kurt Niquidet, president of the council, stated that the tariffs will "only drive-up lumber costs, making housing even less affordable for American families and undermining the integrated trade relationship that benefits both our countries." The Canadian Forest Product Sector echoed these concerns, calling Trump's move "unjustified" and arguing that Canadian forest products strengthen, rather than threaten, U.S. national security.
The sector emphasizes the integrated nature of the North American supply chain, which supports housing affordability, infrastructure, manufacturing, and shared prosperity. The U.S. has long accused Canada's softwood lumber sector of violating anti-dumping rules.
Impact on Canadian Lumber Producers
The U.S. Commerce Department announced plans last month to nearly triple duties on Canadian softwood lumber to just over 20%. The B.C. Lumber Trade Council notes that, with Canadian producers already facing anti-dumping and countervailing duties exceeding 35%, the new tariffs will result in total import taxes surpassing 45%.
RBC analyst Matthew McKellar believes the new levy will add further strain on Canadian lumber producers in a weakening market. He suggests the tariffs could accelerate curtailments of Canadian supply.
Canada's Response and Legal Challenges
Earlier this month, Canada dropped two legal challenges of U.S. duties on Canadian softwood lumber. Global Affairs Canada spokeswoman Dina Destin explained that this decision was made "in close consultation with Canadian industry, provinces and key partners," and reflects a strategic choice to prioritize long-term prospects for a negotiated resolution with the United States. However, Canada is still pursuing six other legal challenges regarding U.S. anti-dumping duties.
Prime Minister Mark Carney pledged an aid package for the lumber industry, including $700 million in loan guarantees and $500 million for long-term support to help companies diversify export markets and develop their products.
