NLBMDA Member Alert:

Commerce Department Finalizes Adjusted Canadian Softwood Lumber Countervailing Duty Rate

Today the U.S. Department of Commerce (DOC) announced its final determination in the sixth administrative review of Canadian softwood lumber, increasing the countervailing duty rate for non-selected companies to 14.63 percent. This review covers imports of softwood lumber from Canada that entered into the United States during the period of January 1, 2023 to December 31, 2023. This marks a more than doubling from the 6.74 percent rate set in the previous (fifth) review. DOC had previewed the change in March with its preliminary determination, which estimated the countervailing adjusted rate at 14.38 percent, slightly lower than the final 14.63 percent determination.

Last month, the Commerce Department announced its finalized antidumping rate, setting the new non-selected companies antidumping rate to 20.56%, making the combined AD/CV rate 35.19%.

Separate to its annual review of antidumping and countervailing duties, the Commerce Department is currently undertaking a Section 232 investigation, “to determine the effects on the national security of imports of wood products: timber, lumber, and their derivative products.” The investigation is expected to conclude by November, though results could be released sooner. Earlier this year, the Department held a brief public comment period during which NLBMDA submitted abbreviated comments arguing additional tariffs would duplicative given the new adjustments to the countervailing and antidumping duty rates. NLBMDA’s comments also emphasized that Canadian SPF and other imported species are preferred in many applications by consumers and should remain accessible at fair prices, especially given the lack of readily available domestic alternatives. NLBMDA continues to engage with the Administration and stakeholders in both Washington, D.C., and Ottawa, urging renewed negotiations toward a new Softwood Lumber Agreement.

NLBMDA remains focused on advocating for greater price stability and long-term predictability, a sentiment shared strongly by NLBMDA members. In recent polling of NLBMDA members, 87% of respondents stated they are moderately or extremely closely monitoring tariffs, with 74% of respondents reporting that trade uncertainty has negatively impacted short-term business operations.

For questions, contact Matthew Delaney, NLBMDA’s Government Affairs Coordinator at mdelaney@dealer.org

Interested in learning more about how to become an NLBMDA Federal Advocacy Sponsor? Contact Jonathan Paine, NLBMDA’s President and CEO at jonathan@dealer.org.