The United States has postponed for three days a new 50% tariff on selected Canadian imports after Washington and Ottawa reached a preliminary agreement just hours before the duties were due to take effect. For the wood industry, the measure is particularly relevant for plywood, certain laminated wood products, doors, fencing components and other processed wood products, while most Canadian softwood lumber, OSB and MDF shipments are outside the scope of the new tariff.<\/p>\n
US President Donald Trump announced late on Tuesday that the additional tariffs, originally scheduled to take effect on August 19, would be delayed for three days while the two countries complete documentation for a trade agreement.<\/p>\n
The measure, introduced under Section 338 of the Tariff Act of 1930, covers around US$20 billion of Canadian exports. Unlike the broader tariffs previously imposed by the Trump administration, the new duties target a defined list of products rather than Canadian goods as a whole.<\/p>\n
Plywood and processed wood products directly exposed<\/strong><\/p>\n The US tariff annex includes several plywood and laminated wood classifications. Among the products listed are certain hardwood-faced plywood products, including panels with birch face veneers, other non-coniferous plywood, some plywood with coniferous outer plies, veneered panels and laminated wood products.<\/p>\n Other wood products covered by the tariff list include wooden doors, frames and thresholds, wooden picture and mirror frames, fencing products such as pickets, palings, posts and rails, assembled wooden fence sections, edge-glued lumber and several categories of other manufactured wood articles.<\/p>\n The potential impact had already become visible in British Columbia before the deadline. Richmond Plywood said around 20% of its sales could be affected by the measure. The producer, which manufactures higher-value plywood products, warned that neither the company nor its US customers could realistically absorb an additional 50% duty.<\/p>\n The exposure is nevertheless product-specific rather than industry-wide. West Fraser, one of Canada's largest wood products groups, said its Canadian shipments of softwood lumber, OSB and MDF are not directly affected by the Section 338 tariffs. Based on its year-to-date shipments, however, the company estimated that the duties would have applied to approximately 3% of its plywood shipments and 20% of its LVL shipments to US customers.<\/p>\n This means the immediate risk is concentrated more heavily in selected engineered and value-added wood products than in commodity panels and lumber.<\/p>\n By contrast, the new Section 338 measure does not generally cover Canadian softwood lumber, OSB or MDF, according to West Fraser's assessment of the tariff schedule.<\/p>\n Softwood lumber dispute remains separate<\/strong><\/p>\n The three-day reprieve does not resolve the much larger dispute surrounding Canadian softwood lumber.<\/p>\n British Columbia Premier David Eby has pushed for lumber to be included in the negotiations, arguing that forestry should be treated as one of Canada's priority industries. Canadian officials and industry representatives have nevertheless indicated that Washington has so far shown little interest in using the current talks to resolve the longstanding softwood lumber dispute.<\/p>\n As a result, the Section 338 negotiations should not be interpreted as a settlement of existing US duties on Canadian softwood lumber. Those measures remain separate from the additional 50% tariff package now under negotiation.<\/p>\n For Canadian panel and engineered wood producers, however, the next three days will be critical. If the preliminary agreement is finalized and the Section 338 duties are withdrawn or modified, manufacturers of plywood and other affected products would avoid an abrupt deterioration in their position in the US market.<\/p>\n If negotiations fail, the tariff would be unusually difficult for affected producers to absorb. A 50% additional duty would effectively close parts of the US market to Canadian specialty plywood and value-added wood products unless suppliers, importers and customers agreed to share the additional cost.<\/p>\n The temporary agreement therefore removes the immediate August 19 deadline, but it does not yet provide Canadian wood manufacturers with certainty. Ottawa and Washington still have to finalize the deal and determine whether the threatened Section 338 tariffs will be cancelled, reduced or simply postponed again.<\/p>\n *<\/strong> The new 50% Section 338 tariff is separate from existing US trade measures on Canadian softwood lumber.<\/p>","protected":false},"excerpt":{"rendered":" The United States has postponed for three days a new 50% tariff on selected Canadian imports after Washington and Ottawa reached a preliminary agreement just hours before the duties were due to take effect. For the wood industry, the measure … Continue reading \n\n
\n \nWood product<\/th>\n 50% tariff exposure<\/th>\n Details<\/th>\n<\/tr>\n<\/thead>\n \n Plywood<\/strong><\/td>\n Yes \u2013 selected products<\/strong><\/td>\n Certain hardwood- and softwood-faced plywood classifications are included.<\/td>\n<\/tr>\n \n Veneered and laminated panels<\/strong><\/td>\n Yes \u2013 selected products<\/strong><\/td>\n Several classifications of veneered and laminated wood products are covered.<\/td>\n<\/tr>\n \n LVL<\/strong><\/td>\n Partial<\/strong><\/td>\n West Fraser estimates that around 20% of its LVL shipments to US customers would be affected.<\/td>\n<\/tr>\n \n Edge-glued lumber<\/strong><\/td>\n Yes \u2013 selected products<\/strong><\/td>\n Included among the processed wood products covered by the tariff schedule.<\/td>\n<\/tr>\n \n Wooden doors, frames and thresholds<\/strong><\/td>\n Yes<\/strong><\/td>\n Finished joinery products are among the affected categories.<\/td>\n<\/tr>\n \n Fencing products<\/strong><\/td>\n Yes<\/strong><\/td>\n Includes certain wooden pickets, palings, posts, rails and assembled fence sections.<\/td>\n<\/tr>\n \n Softwood lumber<\/strong><\/td>\n No*<\/strong><\/td>\n Not directly affected by the new Section 338 tariff; existing US softwood lumber duties remain separate.<\/td>\n<\/tr>\n \n OSB<\/strong><\/td>\n No*<\/strong><\/td>\n Canadian OSB shipments are not directly affected, according to West Fraser.<\/td>\n<\/tr>\n \n MDF<\/strong><\/td>\n No*<\/strong><\/td>\n Canadian MDF shipments are not directly affected, according to West Fraser.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n