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This new preliminary duties rate from DOC is a decrease from the 35.16 percent combined rate established in the final results of the sixth administrative review, reflecting a 10.33 percentage point reduction overall. When accounting for the global 10% Section 232 tariff on softwood lumber, the total effective rate declines from 45.16 percent to 34.83 percent. Duty levels in the sixth and seventh administrative reviews remain elevated compared to earlier reviews, when combined rates generally ranged in the single digits to low teens during the second through fifth reviews of Canadian softwood lumber imports.
As with all preliminary measures, these rates remain subject to revision. Interested parties will have the opportunity to submit comments, and Commerce may adjust the duty levels, either upward or downward, before issuing final results later this year, which are expected within 120 days of publication.
The seventh administrative review comes as U.S. and Canadian trade officials begin the first joint review of the U.S.-Mexico-Canada Agreement (USMCA). As part of the public stakeholder process, NLBMDA called for the inclusion of a more effective dispute resolution mechanism within USMCA to reduce the need for annual duty adjustments and provide greater long-term predictability. In comments, NLBMDA emphasized that while USMCA recognizes the integrated nature of the lumber and building materials sector and provides tariff-free treatment for certain engineered and prefabricated wood products, raw and semi-processed Canadian lumber remains subject to ongoing market volatility in the absence of a new Softwood Lumber Agreement (SLA). NLBMDA urged the United States to prioritize negotiating a new, long-term SLA with Canada and incorporating it into the USMCA framework.
NLBMDA will continue to monitor announcements from the Department of Commerce and provide updates on any changes to the preliminary rates following the issuance of the final determination.
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