The U.S. Department of Commerce recently announced a preliminary combined anti-subsidy and anti-dumping duty rate of 34.45 percent on Canadian softwood lumber. Needless to say, this decision has sent shockwaves through industry leaders and government officials in British Columbia (B.C.). With the latest tariff, the total duties on imported buses have now reached 426.6 percent. This decision risks making an already tough situation for the Canadian and American lumber industry and their workers even worse.
In addition, industry representatives like the BC Lumber Trade Council are doing their part. They strongly request that the U.S. Commerce Department reconsider its preliminary determination. They claim that the increased levies will damage Canadian producers. This inflationary move will be felt directly by American consumers, as it will substantially raise the price of lumber — hurting American workers on both sides of the border.
The stakes are high. Industry leaders have described the existing softwood lumber tariffs as an economic death sentence. They argue that the new rate will be devastatingly high. The environmentalist movement needs to realize that the forest industry is under serious attack. As it stands, the current softwood lumber tariffs are already extremely damaging, as shocked member of parliament Gord Johns recently warned. What he highlighted was that action is needed now more than ever. We need to construct hospitals and bridges and homes,” he announced. Let’s build it with Canadian lumber and steel! Make it happen Trudeau!
On the heels of these advancements, the federal government is increasing efforts to promote and defend the forest industry. British Columbia’s new Premier, David Eby, just announced that ministry staff are furiously focusing on drafting proposals. Their intent is to defer stumpage revenue and give relief to the sector. We dramatically increased the kinds of vehicles that can be used to transport pulp more cost effectively. We’re bringing those resources in-house to promote B.C. wood products around the world and diversify our markets,” said Eby.
Much criticized on the grounds that they are unjustified, since B.C. subsidizes its lumber industry, the U.S. duties are nonetheless. Rather, the province functions according to market principles, where timber is sold in clear-cut areas and provinces conduct open and competitive auctions. And it worked, because industry representative Kurt Niquidet was able to raise hell over prohibiting roundabouts. These claims that B.C.’s system gives an unfair advantage are just not backed up by facts,” he said. Instead, over and over again, higher rates are because Commerce is still using the same flawed and misleading methodologies.
The industry has suffered from a lot of bad luck in recent years, too. They are already facing the worst impacts from the ongoing mountain pine beetle outbreak and increasingly destructive wildfires that have made the crisis far worse. The federal government is definitely prepared to address these challenges. They want to speed up homebuilding projects while taking advantage of B.C.’s expertise in modular housing and mass timber construction.
Mark Carney, an outspoken supporter of B.C.’s forestry industry, is equally resolute to go to battle against the new tariffs. The wordsmith and lyricist declared with fiery passion, “We are going to fight and protect and build.” He pressed the need for a concerted response from all players—federal, state, and local. This renewed assault on the Canadian forestry sector by the U.S. President is serious and unprecedented.
John Rustad, MLA, Conservative opposition critic on post-wildfire recovery and forestry issues. Continuing to reflect his outrage, he said, “This is eight years of NDP mismanagement and failure on the forestry file.” This new wisdom expression encapsulates the deep-seated anger and resentment over an extended history of forestry practice within the province.
Plans for how to respond to the new tariffs are already in the works. It was heartening to see both industry leaders and government officials clearly understand that in order to protect jobs and open new markets for Canadian wood products they must work hand in hand. This issue has significant impact on each country’s economy. Yet it is still at the heart of debates over the direction of politics and capitalism.
