The US Department of Commerce has issued its final countervailing duty determinations for Canadian softwood lumber covering 2024, reducing the proposed rates for several major producers. The decision marks another stage in the long-running trade dispute between Washington and Ottawa, with new rates expected to take effect following publication in the Federal Register.<\/p>\n
The seventh administrative review covers shipments made between January 1 and December 31, 2024. The findings follow revised preliminary calculations released in June and come as Canadian sawmills continue to face high trade costs, weak US construction demand and pressure on operating margins.<\/p>\n
West Fraser faces highest rate among individually reviewed companies<\/strong><\/p>\n West Fraser Mills received a final countervailing duty rate of 15.31%, down from 16.15% in the June post-preliminary determination. Resolute FP Canada received 12.42%, compared with 12.24% in June, representing a small increase rather than a reduction.<\/p>\n The rate for 215 companies not individually examined was set at 14.11%, down from 14.52%.<\/p>\n Canfor, Interfor, J.D. Irving, Groupe Lebel and numerous other Canadian producers and exporters are included in the non-selected group. They receive the same 14.11% countervailing duty rate under this review.<\/p>\n The final determination leaves West Fraser with the highest countervailing duty rate among the two companies individually examined, while Resolute receives the lowest.<\/p>\n Commerce reviewed subsidy programmes involving provincial timber pricing, electricity arrangements, government grants and tax measures. The final calculations incorporated changes following submissions from interested parties.<\/p>\n The findings concern countervailing duties only. Antidumping duties are determined separately and must be considered when assessing the combined trade burden on Canadian lumber entering the United States.<\/p>\n Final US countervailing duty rates for Canadian softwood lumber<\/strong><\/p>\n The final rates cover the seventh administrative review, with the new cash deposit requirements becoming effective upon publication in the Federal Register<\/em>.<\/p>\n CVD = countervailing duty. Rates exclude antidumping duties and Section 232 tariffs. Companies in the non-selected group share the same review rate.<\/p>\n<\/div>\n Canadian producers continue to face multiple US tariffs<\/strong><\/p>\n The countervailing duty rates form only part of the trade costs facing Canadian softwood lumber exporters.<\/p>\n The United States also maintains antidumping duties on Canadian lumber, while a separate 10% tariff on imported softwood timber and lumber was introduced under Section 232 in October 2025.<\/p>\n The combination has significantly increased costs for Canadian exporters selling into the US market. Although individual producers face different antidumping and countervailing duty rates, the additional Section 232 tariff has raised the cost of shipments across the industry.<\/p>\n The latest countervailing duty reductions provide some relief for West Fraser and companies receiving the non-selected rate, although the changes are relatively small compared with the total tariff burden.<\/p>\n For West Fraser, the reduction amounts to 0.84 percentage points, while the non-selected rate declines by 0.41 percentage points. Resolute's rate increases by 0.18 percentage points.<\/p>\n Trade dispute continues as Canadian sawmills face weak demand<\/strong><\/p>\n The latest review comes during a difficult period for Canadian lumber manufacturers, particularly in British Columbia, where high timber costs and weaker market conditions have led to production curtailments and permanent mill closures.<\/p>\n US housing construction remains the most important export market for Canadian softwood lumber. Elevated mortgage rates and subdued residential building activity have limited demand, while tariffs have added costs to shipments crossing the border.<\/p>\n The duties have also influenced the competitive position of Canadian producers relative to US sawmills and suppliers from other countries.<\/p>\n Washington maintains that its countervailing duties address subsidies benefiting Canadian producers, particularly those associated with timber harvested from publicly owned forests. Canada disputes the US methodology and has repeatedly challenged the measures through trade proceedings.<\/p>\n The seventh administrative review examines subsidies received during 2024, rather than current operating conditions. Its final results will determine assessments on covered entries from that period and establish new cash deposit rates for companies included in the review.<\/p>\n Commerce is also expected to release the final antidumping determinations for the same review, which will provide a more complete picture of the revised duties facing individual Canadian producers.<\/p>\n For companies outside the group covered by the seventh review, the existing 14.19% general countervailing duty cash deposit rate will continue to apply.<\/p>","protected":false},"excerpt":{"rendered":" The US Department of Commerce has issued its final countervailing duty determinations for Canadian softwood lumber covering 2024, reducing the proposed rates for several major producers. The decision marks another stage in the long-running trade dispute between Washington and Ottawa, … Continue reading \n\n
\n \nCompany<\/th>\n June 2026 CVD<\/th>\n Final CVD<\/th>\n<\/tr>\n<\/thead>\n \n West Fraser<\/td>\n 16.15%<\/td>\n 15.31%<\/td>\n<\/tr>\n \n Resolute Forest Products<\/td>\n 12.24%<\/td>\n 12.42%<\/td>\n<\/tr>\n \n Canfor<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n \n Interfor<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n \n J.D. Irving<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n \n Groupe Lebel<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n \n GreenFirst Forest Products (QC)<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n \n Dunkley Lumber<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n \n Other non-selected companies under review<\/td>\n 14.52%<\/td>\n 14.11%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n