Canadian lumber industry faces a heavy blow! The United States plans to impose tariffs exceeding 50% - will the cost of building houses skyrocket?

The United States threatens to impose a total of 52% import tariffs on Canadian lumber products, causing concerns in the industry about future development and potentially leading to an increase in the cost of home construction in the United States. According to documents released by the United States International Trade Administration database, the U.S. Department of Commerce proposed on Monday to nearly double the anti-dumping duty on Canadian softwood to 20.07%. These woods are already subject to a 6.74% countervailing duty. These tariffs are aimed at counteracting what the United States considers "dumping" of low-cost Canadian lumber. On the same day, President Trump confirmed that all Canadian and Mexican goods, except for energy products, will be subject to a 25% tariff. With the addition of the Commerce Department's tariff and Trump's tariff, the total tax rate will reach 51.81%. Kurt Niquidet, chairman of the British Columbia Wood Trade Council, stated that the new anti-dumping tax is expected to be confirmed in August. He mentioned that there are rarely differences between preliminary and final rulings. In response to this news, lumber futures prices rose to the highest level in two and a half years on Monday, and the stocks of Canadian lumber companies such as Interfor Corp., West Fraser Timber Co. (WFG.US), and Canfor Corp. plummeted due to the tariff news. Softwood trade has long been a sore point in the trade relations between the two countries. The United States accuses Canada of subsidizing its lumber industry by charging low cutting fees, and has imposed tariffs on Canadian softwood multiple times over the years. Last Saturday, Trump ordered an investigation into the harm caused by wood imports to national security, which could pave the way for additional import control measures. He also signed an executive order aimed at expanding domestic lumber production. Canada supplies 30% of the softwood needed by the United States, as well as most of the imported lumber. Before the news of the anti-dumping tax increase was announced, analysts from the Bank of Nova Scotia wrote in a report to clients on Monday, "It is difficult to imagine that certain Canadian paper and forestry product industries will not be severely affected if all of these taxes are implemented." They also added that if all of these threatening taxes are implemented, "the risk of continued operation for marginal factories in Canada will inevitably increase." The countervailing duty will also be subject to a review later this year, but Niquidet expects it will not be increased. British Columbia is a major province for lumber extraction. BC Premier David Eby stated in an email declaration, "The cost of building homes in the United States will rise, and the hardworking people of our province will bear the brunt of these unjust tariffs."