THUNDER BAY – Ottawa says it will take immediate action to help companies, workers and communities impacted by the U.S. decision to impose duties up to 24 per cent on Canadian softwood lumber utilized by the American home-construction industry.
Minister of Natural Resources Jim Carr and Minister of Foreign Affairs Chrystia Freeland on Monday reacted swiftly to the decision, announced earlier in the day by President Donald Trump’s administration, the move coming less than a week after the U.S. leader attacked the Canadian dairy industry and promised big changes to the North American Free Trade Act.
“The government of Canada disagrees strongly with the U.S. Department of Commerce’s decision to impose an unfair and punitive duty. The accusations are baseless and unfounded,” the two ministers said in their joint statement.
“The decision will negatively affect workers on both sides of the border and will ultimately increase costs for American families who want to build or renovate home. The U.S. National Association of Home Builders has calculated that a $1,000 increase in the cost of a new house would put home ownership beyond the reach of more than 150,000 American families and jeopardize thousands of jobs in the American home construction industry.”
According to CNN, tariffs ranging between three per cent and 24 per cent will target five companies, including Resolute Forest Products. Other affected companies include West Fraser Mills, Tolko Marketing and Sales, J.D. Irving and Canfor. Other lumber companies will pay a 20 per cent tariff.
Resolute told the cable news outlet the decision would have a negative impact on Americans.
"Managed trade only serves to benefit large timber barons in the U.S. while adversely impacting U.S. consumers and millions of hard-working Americans in the housing sector," the network quoted a company spokesperson as saying.
Carr said he will be reconvening the federal-provincial task force on softwood lumber this week to examine additional measures.
“The task force was formed to share information and analyze and assess the needs of forest workers and communities,” Carr said in the release. “The upcoming meeting will build on the progress we have made through this federal-provincial collaboration on the softwood lumber file.”
The Canadian government has promised to press the United States to rescind the tariff and plan to work with the U.S. administration to come up with a long-term agreement.
American Commerce Secretary Wilbur Ross told Fox News the tariff will be applied retroactively on Canadian lumber exports, which total about US$5.6 billion annually. The report noted the decision, which suggests Canada improperly subsidized its softwood exports, is only preliminary.
"We tried to negotiate a settlement but we were unable," Ross told the network.
The tariffs are expected to be implemented sometime next week.
