Tariff cut — still steep
The U.S. Department of Commerce issued a preliminary softwood‑lumber tariff decision at just under 25%, down from the current rate above 35% — a move that nudges costs lower but leaves duties very high by historical standards. Industry groups called the dispute a “broken process” and warned the preliminary step isn’t a cure, so expect retail lumber prices to remain elevated while negotiations continue. (cbc.ca) (bnnbloomberg.ca)
The United States just moved to cut one lumber duty from more than 35% to just under 25%, and Canadian producers still called it a broken system because the new rate is only preliminary and still far above the levels that shaped most of the last decade. (citynews.ca) This fight is about softwood lumber, which is the pine, spruce, and fir used in house framing, roof trusses, and subfloors across the United States. Canada is the biggest foreign supplier to that market, so when Washington changes the duty, American builders feel it almost immediately. (rbc.com) The U.S. argument has barely changed in decades: American producers say Canadian provincial governments keep stumpage fees low, which lets Canadian mills buy timber on cheaper terms than private U.S. rivals. Canada says that system reflects public ownership of forests, not an unfair subsidy, and the two countries have been fighting over it since the early 1980s. (rbc.com) The current round got much harsher in 2025, when the average anti-dumping and countervailing duties on Canadian softwood lumber rose to about 35.2%. That was a sharp jump from the 14.5% average in the prior review, and it pushed the dispute from an old trade irritant into a fresh cost problem for construction. (rbc.com) Then another layer landed in October 2025, when the United States imposed a separate 10% global tariff on imported softwood timber and lumber under a national-security action. Canada’s own trade department says that measure hit on top of the long-running softwood case rather than replacing it. (international.gc.ca) That stack matters because a lower duty in one review does not erase the rest of the bill. The National Association of Home Builders said in late 2025 that combined duties on Canadian softwood lumber were nearing 45%, even before the market had fully absorbed all the knock-on effects in supply chains and pricing. (nahb.org) Builders have been warning for months that tariffs on wood act like a tax added to every new house before drywall, wiring, or appliances even show up. The National Association of Home Builders said earlier tariff moves were adding roughly $7,500 to $10,000 to the price of a typical new single-family home. (nahb.org) (lesprom.com) Canadian mills are not celebrating the new preliminary number because they have seen this movie before: reviews drag on, final rates can shift, and companies keep paying cash deposits while lawyers and trade officials fight through appeals. The Independent Wood Processors Association said that long delay is exactly why it called the process broken. (bnnbloomberg.ca) (citynews.ca) So the headline is a cut, but the practical result is closer to a partial discount on an already expensive bill. Unless Washington and Ottawa reach a wider agreement that clears away the layers of duties, softwood lumber will stay costly, and that cost will keep showing up in the price of building homes in the United States. (citynews.ca) (international.gc.ca)
