The United States has announced new tariffs on Canadian softwood lumber, adding a 10% duty under Section 232 of the Trade Expansion Act. The measures, effective October 14, 2025, also include a 25% tariff on kitchen cabinets, vanities, and other upholstered wooden products, with rates scheduled to rise to 50% and 30% respectively on January 1, unless a deal is reached with Canada.<\/p>\n
The move follows a report from U.S. Commerce Secretary Howard Lutnick, which concluded that wood products are being imported in quantities that could threaten U.S. national security. However, Canadian industry representatives and analysts strongly dispute this rationale.<\/p>\n
\u201cThese tariffs will not improve U.S. national security \u2014 they will only drive up lumber costs, making housing even less affordable for American families and undermining the integrated trade relationship that benefits both our countries,\u201d said Kurt Niquidet, President of the British Columbia Lumber Trade Council (BCLTC).<\/p>\n
Canadian softwood lumber exporters are already facing anti-dumping and countervailing duties of just over 35%. With the new Section 232 tariffs, total import taxes on Canadian lumber entering the U.S. will now exceed 45%, placing additional strain on the market. BCLTC warned that the tariffs threaten jobs on both sides of the border and complicate efforts to address the U.S. housing supply crisis.<\/p>\n
The Forest Products Association of Canada also criticized the tariffs as \u201cunjustified,\u201d highlighting that the expansion to include furniture and cabinetry could destabilize the broader North American forest sector supply chain. \u201cThis move risks raising housing costs in the United States and undermines the integrated trade relationship that has provided jobs, investment, and prosperity in both countries,\u201d said FPAC President Derek Nighbor.<\/p>\n
Analysts predict the new duties could accelerate reductions in Canadian supply and potentially influence short-term lumber prices in the U.S. market. RBC analyst Matthew McKellar noted that while the market remains weak, the announcement may cause a temporary spike in prices as companies adjust to the higher tariffs.<\/p>\n
Earlier this month, Canada dropped two legal challenges to U.S. softwood lumber duties, a strategic decision aimed at improving prospects for a negotiated resolution. However, Ottawa continues to pursue six other challenges regarding U.S. anti-dumping and countervailing measures.<\/p>\n
Prime Minister Mark Carney has pledged a $1.2 billion support package for the Canadian lumber sector, including loan guarantees and long-term assistance to help companies diversify export markets and strengthen competitiveness.<\/p>\n
The new tariffs come at a time when North American lumber markets are already under pressure from declining construction activity and rising production costs, prompting concern across the industry for both supply stability and international trade relations.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":97021,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[3313,3750,3405],"class_list":["post-97020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","tag-canada","tag-lumber-market","tag-north-america","topic-forestry","topic-lumber","topic-sawmilling","topic-wood-products","area-global","area-north-america"],"acf":[],"yoast_head":"\n