The U.S. has announced duties of up to 24 per cent on lumber imports, the latest flare-up in the decades-old softwood lumber feud between Canada and its largest trading partner. "That is the reality of this countervail".
Trump's tariffs come as the U.S., Canada and Mexico prepare to renegotiate NAFTA, the 1994 free trade agreement. "We are going to fight for you and we are not going to give up this fight until it is won", Clark said at Partap Forest Products on River Road. That, combined with exchange rate differences, made it challenging for USA producers to compete, he said.
USA firms declared victory Monday night. CIBC analyst Hamir Patel forecast the initial combined countervailing and anti-dumping duties could reach 45 to 55 percent, he said in an April 23 note. Many have said they'll have no choice but to sell their cows and shut down if they don't find new buyers for their milk.Farms in NY and Minnesota were also affected by the change.
"Canadians are pretty thick-skinned", she says.
Which just broke to the weakest in 4 months against the U.S. dollar. In 2001, after the imposition of tariff barriers, the federal government had taken several months to implement two financial assistance programs.
"Monday's announcement is further proof that the United States and Canada need to enact a new softwood lumber agreement", said Kevin McKenney, WDMA's director of government affairs. We remain confident that a negotiated settlement is not only possible, but in the interests of both countries. The duties collected would amount to about $1 billion a year, marking the second time since Trump entered office three months ago that a fine of that size has been imposed, said Ross.
US lumber producers asked the Commerce Department last November under President Barack Obama to investigate what they viewed as unfair subsidies to Canadian competitors who procure their timber from government lands at cheaper rates. States were ranked by the total share of imports originating in Canada. A spokesperson for Resolute FP Canada, one of the five firms singled out by the tariffs, said that the taxes would ultimately hurt US consumers and the housing sector while enriching U.S.
They want to defend the softwood lumber industry in the courts.
In 2002, the US imposed a 30% tariff on Canadian softwood lumber, which Canadian firms claimed cost 30,000 jobs at the time.More news: Measuring Trump's First 100 Days
Canada's smallest producers might be hit hardest.
"The milk market is tighter than we expected", said Daniel Smith, a state Department of Agriculture, Trade and Consumer Protection administrator. "It became apparent that Canada intends to effectively cut off the last dairy products being exported from the United States".
Some American reporters asked why he was so ostentatiously picking on Canada, such a close ally and neighbour.
"These initiatives are available to businesses of all sizes and can assist companies looking to make capital investments, expand market opportunities and diversify into new markets with confidence".
A coalition of United States lumber industries welcomed Monday as the Department of Commerce produced a preliminary assessment of the subsidy rate for the Canadian lumber industry. Softwood lumber accounted for $5.6 billion of the imports.
The complaint also alleges that Canada heavily subsidizes its timber industry by offering Pacific Coast producers access to wood from government-owned land at below-market prices.
"This new trade action is driven by the same protectionist lumber lobby in the USA whose sole goal is to create artificial supply constraints on lumber and drive prices up for their benefit, at the expense of American consumers". That included two former ambassadors to Canada, Bruce Heyman and Jim Blanchard, speaking at a conference in Detroit.
Another decision by the U.S.is expected to be made in June, when they propose to issue preliminary anti-dumping determination - another type of duty the USA argues will help offset "unfair" selling practices by Canadian lumber companies.
"We're pleased with the response today", Nighbor said of the government's response. We run into the same thing in other friendly nations like France, where they massively subsidize their steel industry.