Trump Slaps 10% Tariff on Canadian Lumber, Straining US-Canada Trade
President Donald Trump has imposed an additional 10 percent tariff on Canadian softwood lumber imports, affecting billions of dollars' worth of products. This move, part of a 'national security' action, is expected to further strain trade relations with Canada, which already faces high duties on its lumber exports to the U.S. The U.S. lumber industry and furniture makers are set to benefit.
Softwood lumber is a crucial material in construction and paper product manufacturing. The National Association of Home Builders has cautioned that additional tariffs could lead to increased prices for new homes and remodeling projects. The U.S. and Canada are due to review the USMCA (United States-Mexico-Canada Agreement) next year, which was primarily negotiated by Robert Lighthizer, the then U.S. Trade Representative. The new tariff comes on top of existing duties ranging from 26 percent to nearly 48 percent.
The additional 10 percent tariff on Canadian softwood lumber imports is intended to support the U.S. lumber industry and furniture makers. However, it may lead to higher housing costs and could further complicate U.S.-Canada trade relations. Both countries will revisit the USMCA next year, providing an opportunity to address these trade tensions.
