President Donald Trump imposed a tariff on importing Canadian softwood lumber. Tariffs between 3 and 24.1 percent are to be imposed on five Canadian lumber companies: West Fraser Mills, Tolko Marketing and Sales, J.D. Irving, Canfor Corporation and Resolute FP Canada.
The lumber tariff originates from suspicions that Canadian lumber companies have been receiving unfair subsidies from their government since the 1980s. The hope is to offset this advantage with tariffs to make US lumber companies competitive.
Canadian lumber firms and government officials have criticized this decision, which could cost Canadian firms thousands of jobs. Resolute FP denied receiving any subsidies, calling the allegations "baseless and unfounded."
The move that sparked Trump's action stemmed from US and Canadian talks about dairy tariffs. US milk exports can face tariffs as high as 292%, according to Canada's Agriculture Department. These tariffs may change once renegotiations of NAFTA begin.
Wednesday, April 24, 2019 | 7:30 AM – 9:30 AM EDT | The Hartford Club