US Hits Canada Lumber With 34% Duties Even Before Tariffs

The U.S. is expected to increase duties on Canadian softwood lumber from the current 14.4% to 34.45%, adding to already rising materials costs for American builders. This move comes in the context of a longstanding trade dispute between the two nations regarding alleged Canadian subsidies to sawmills, a claim that Canada denies, asserting that their stumpage system is market-driven. The U.S. Lumber Coalition argues that Canadian practices harm American lumber businesses and jobs. British Columbia Premier David Eby has criticized the duties as detrimental to workers and contributing to rising housing costs in the U.S.

Experts in transportation note that the lumber tariff situation could have broader implications for logistics and supply chain management. Transportation networks may face additional stress as manufacturers and builders adjust to higher lumber costs that can slow down project timelines and increase shipping demands in order to maintain competitiveness. As raw material costs increase, companies might also be compelled to optimize their supply chain logistics, which could lead to shifts in both domestic and cross-border transportation patterns.