U.S. Tariff on Canadian Lumber Imports Now Over 30%

Trade Update • July 29, 2025

Key Points

• The U.S. has raised anti-dumping duties on Canadian softwood lumber to 20.56% for most companies, up from 7.66%.

• Combined with countervailing duties, total tariffs now exceed 30%, possibly reaching 34% or more after August 2025.

• The U.S. will announce the final decision on August 8, 2025 to confirm the total tariffs.

• These higher tariffs raise costs for U.S. homebuilders and buyers.

The U.S. Department of Commerce (DOC) has finalized its review of anti-dumping duties on Canadian lumber imports between January 1, 2023, and December 31, 2023. The review found that Canadian lumber is sold in the U.S. at prices well below fair market value.

As a result…

• The DOC has sharply increased anti-dumping duties to an average of 20.56%, up from 7.66%.

• Some companies face individual duty rates ranging from 10% to 35.5%.

• Combined with a countervailing duty of about 6.74%, total tariffs now exceed 30%.

Why It Matters

• Impact on Canada: U.S. tariffs could affect forestry jobs and local economies in provinces such as British Columbia and New Brunswick.

• Impact on the U.S.: Canadian lumber is a dominant source for framing lumber in the U.S. market. Higher tariffs increase the cost of building homes, affecting affordability. Related industries such as furniture and paper also face higher costs. 

• Trade tensions and disputes: Canada continues to challenge these duties at the World Trade Organization and under USMCA dispute mechanisms. Legal battles add uncertainty but push toward negotiation. These ongoing legal battles add uncertainty and raise prospects for negotiated solutions or further litigation. 

What’s Next?

• The U.S. will announce the final countervailing duty on August 8, 2025, which will confirm the total tariffs. 

• Lumber prices are expected to stay unstable, creating challenges for both the Canadian industry and American consumers. 

• Both governments say they want to work toward a deal, but the dispute is likely to continue for some time. 

Background Information

The softwood lumber dispute began in 1982, with the U.S. claiming that Canadian lumber benefits from unfair government subsidies. Over 40 years, the two countries have repeatedly imposed tariffs, negotiated quotas, and launched new investigations. Despite temporary agreements, the dispute has continued to disrupt the lumber trade. 

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.