Trump expands tariffs globally to include softwood lumber, escalating trade tensions
US President Donald Trump has announced plans to impose tariffs on softwood lumber globally, broadening trade restrictions beyond Canada to include Europe.
The move, revealed during a speech in Miami on Wednesday, adds lumber and forest products to a growing list of goods the administration plans to target in the coming months.
“I’m going to be announcing tariffs on cars, and semiconductors and chips, and pharmaceuticals – drugs and pharmaceuticals – and lumber probably, and some other things over the next month or sooner,” Trump said at the conference.
Trump has also reiterated plans to apply 25% tariffs on all goods imported from Canada and Mexico starting in early March, further complicating trade relations between the neighbouring countries.
The US Department of Commerce already enforces duties on Canadian softwood lumber shipments, with the current combined countervailing and anti-dumping duty rate at 14.4% for most Canadian producers.
Analysts warn that these duties could more than double by the end of the year, potentially reaching 30% as part of an upcoming review. If new tariffs are imposed, combined with the existing softwood duties, the total rate could surge to 55%, significantly increasing the cost of lumber imports into the US.
Read next: Trump tariffs make no sense, says Canada trade minister
For decades, the US lumber industry has claimed that Canadian producers benefit from unfair provincial subsidies and dump softwood products below market value in the US.
However, Canadian officials dispute these allegations, arguing that international trade panels have consistently ruled in Canada’s favour. Global Affairs Canada has stated that international panels have repeatedly upheld Canada’s position as a fair trading partner.
The Commerce Department is set to release a preliminary decision on revising anti-dumping duties on Thursday, with a final ruling expected in August.
The outcome could have significant implications for homebuilders, developers, and mortgage professionals, as higher lumber costs could impact housing affordability and construction projects across the US.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
