Trump’s tariffs on Canada likely aim to secure trade concessions, better terms for U.S. exports, or agreements on energy and manufacturing. Without clear demands, the tariffs seem to be a negotiation tool rather than a permanent policy.
Key trade disputes include dairy and softwood lumber. Canada’s supply management system imposes high tariffs (often over 200%) on dairy imports, limiting U.S. access. The U.S. argues this inflates prices and restricts competition.
In softwood lumber, Canada is accused of subsidizing its industry by allowing below-market harvesting on government land. This undercuts U.S. producers, prompting U.S. tariffs, while Canada insists its pricing is fair and legal.
” the tariffs seem to be a negotiation tool rather than a permanent policy.”
I said this same thing on a few other threads. The tariffs are a lever, once things move in Trump’s direction, they’ll be removed.
It’s the same with Mexico farm products. I can’t say that they are subsidized but they don’t have to follow all the regulations that American farmers follow and they have very cheap labor.
If true what a pity.
We have had a duty/quota on Canadian Softwood lumber for over 30 years. The current duty is 14% on average.
This has been negotiated multiple times over the last thirty years. Starting around 6% and eventually the 14%.
As a lumber broker for almost 40 years I can tell you from experience that different regions of our country prefer to purchase different species of lumber. In almost all regions that mix is a blend of Canadian, US, European and even South American lumber. The closer your location to the US/Canada border the heavier that percentage is to Canadian.
The closer to a southeastern port the more likely to buy European Spruce lumber. The west coast and Pacific NW is heavier to US Douglas Fir and Canadian DF.
However, Southern Yellow Pine is by far the dominate species used for pressure treating, truss manufacturing and other uses where strength is required.
For general framing like wall studs the other species like SPF(Spruce, pine, fir) Douglas Fir and Hem fir are more desired.
Also, a major factor is that SYP lumber is the least expensive species to produce in the world. SYP trees can be grown to a harvest size in 30-40 years. Which is significantly less than other northern species.
SYP is also manufactured typically in NON UNION right to work states like AR, TX, MS, LA, AL, GA, NC, SC & VA.
Mills in WA & OR have not only a higher log cost but a higher manufacturing cost.
Due to all these factors all the large corporations like West Fraser, Canfor, Interfor, Weyerhaeuser, Binderholtz, JD Irving, Tolko, Idaho Forest Group, Teal Jones Group, etc have all either built or purchased existing US SYP mills or Maine sawmills in the last fifteen years. They know IF they want to stay in the lumber business that the cheapest fiber in the world is in AL, MS, LA & AR.