Canadian Lumber Tariffs Cut by More than Half
NAHB’s tireless efforts calling on the Biden administration to eliminate — or at the very least reduce — duties on Canadian lumber shipments into the United States has taken a step in the right direction, with the Department of Commerce moving to cut tariffs by more than half and Canada seeking a new legal solution that would completely eliminate the tariffs.
The Department of Commerce has issued its final third administrative review to reduce duties on shipments of Canadian lumber into the United States by more than half from 17.99% to 8.59%. This is even lower than the initial third administrative review that would have set the tariffs at 11.64%.
The new 8.59% lumber tariff is expected to take effect later this month. Although lower tariffs could help to ease extreme price swings in the lumber market that have added $14,300 to the price of a typical new home since the early stages of the pandemic in the spring of 2020, the fact remains that the Commerce action does not adequately address the issues surrounding Canadian lumber — that all parties must come to the table to negotiate a long-term solution that puts an end to the tariffs.