MONTREAL, Q.C. — Another wave of American duties is expected to hit Canada’s softwood lumber industry today, putting pressure on smaller producers to cut jobs.
In April, the U.S. government announced preliminary countervailing duties against five companies that ranged from between three and 24 percent. Other producers were hit with a tariff of 19.88 percent.
Today, the United States is expected to announce preliminary anti-dumping duties at an average rate of around 10 per cent. Those would be in addition the duties that were previously announced.
The ripple effects of the first round of softwood lumber duties are already being felt. Resolute Forest Products has cut shifts at seven sawmills, and there are fears other companies could follow suit.
The U.S. has accused Canadian softwood producers of being unfairly subsidized. They’ve also accused Canadian producers of selling their products at below market value.