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The U.S. Department of Commerce announced Friday, Aug. 8 that, as part of its sixth administrative review of the countervailing duty order on softwood lumber from Canada, it will raise its countervailing duties from 6.74 per cent to 14.63 per cent for non-selected companies — an increase aligned with a previous administrative review.
These administrative reviews are conducted once a year at the request of an interested party after an antidumping duty or countervailing duty order is put into effect.
The Department of Commerce is reportedly unhappy with the current subsidies, with rates ranging from 12.12 per cent to 16.82 per cent.
It stated in a recent press release that these rates are “on average, larger than the final subsidy rates determined in the previous administrative review but in line with Commerce’s preliminary results from April 2025.”
However, both the BC Lumber Trade Council (BCLTC) and the BC Council of Forest Industries (COFI) are condemning the increases.
Both organizations say they are deeply concerned that these new duties — combined with anti-dumping duties of 20.56 per cent — raise the total to 35.19 per cent, a number COFI calls “crippling.”
“These unjustified actions continue to harm workers, families, and communities on both sides of the border,” said Kim Haakstad, president and CEO of COFI. “To mitigate these harms, we must focus on what we can control — which is the competitiveness of the BC forestry industry within Canada.”
The BCLTC emphasized that the increases will only serve to economically harm both countries.
“This decision will harm communities on both sides of the border,” said Kurt Niquidet, president of the BC Lumber Trade Council. “It places unnecessary strain on forestry-dependent regions in Canada while driving up construction costs for American builders and families. What is needed now is a stable, negotiated agreement that supports jobs, trade, and housing affordability.”
COFI stated in a press release that it is calling on the provincial government to immediately improve the business environment for forestry in BC, as the industry faces issues including rising costs, declining harvest levels, regulatory delays, and policy uncertainty.
“If we don’t take urgent action to improve our business climate, we risk losing more mills, jobs, and economic opportunities,” Haakstad said.
COFI added that possible solutions include streamlining permitting processes, activating provincial timber sales, removing cross-ministry bottlenecks, and enhancing partnerships and revenue sharing with First Nations.
The BCLTC is also calling for federal intervention in the ongoing trade dispute between the United States and Canada.
“We believe the best way forward is through meaningful negotiation — not litigation,” Niquidet added. “A durable agreement would bring certainty to a critical cross-border supply chain and support the long-term interests of both countries.”
The BCLTC reported that, in the absence of a negotiated settlement, it will continue to work with trusted partners, through the United States–Mexico–Canada Agreement (USMCA), and pursue Canadian interests through all available legal channels.
“Lumber producers in British Columbia compete in an open, market-based system and receive no unfair subsidies,” Niquidet emphasized. “We will continue to stand up for Canadian producers — and for the thousands of workers and communities whose livelihoods rely on a stable, rules-based trading relationship with the United States.”
