U.S. slaps 20.56% anti-dumping duties on Canadian softwood lumber

[Allan]

In the latest American self own they've decided to take a step that will add $15k to $20k to the price of building a home.

The U.S. Commerce Department has decided to hike anti-dumping duties on Canadian softwood to 20.56 per cent, with B.C. lumber organizations calling them unjustified, punitive and protectionist.

The hiked softwood lumber duties come amid the growing trade war between Canada and the U.S., and represent the latest blow to B.C.'s beleaguered forestry industry.

https://www.cbc.ca/news/canada/british-columbia/us-hikes-softwood-lumber-duties-1.7594807

This is supposed to be in retaliation for Canadian softwood lumber subsidies but the government doesn't subsidize the industry.

The US does not have its own source of construction grade lumber as the map below shows.

 

[Fearandloathing]

In the latest American self own they've decided to take a step that will add $15k to $20k to the price of building a home.

https://www.cbc.ca/news/canada/british-columbia/us-hikes-softwood-lumber-duties-1.7594807

This is supposed to be in retaliation for Canadian softwood lumber subsidies but the government doesn't subsidize the industry.

The US does not have its own source of construction grade lumber as the map below shows.

View attachment 67584326

He just can't help himself.

He wants his 51st state!

Good thing Canada is turning to new friends who aren't enemies posing as friends.

The good news is the United States will implode long before any American gets a say in anything.

 

[Napoleon]

This is supposed to be in retaliation for Canadian softwood lumber subsidies but the government doesn't subsidize the industry..

So your government claims, but the truth is that it does subsidize the industry with below market stumpage fees it administers because it owns most of the timber.

 

[ttwtt78640]

So your government claims, but the truth is that’s it does subsidize the industry with below market stumpage fees it administers because it owns most of the timber.

The argument (successfully?) used by Canada (in the past) was the lack of any internationally accepted “market standard” for stumpage fees.

 

[Napoleon]

The argument (successfully?) used by Canada (in the past) was the lack of any internationally accepted “market standard” for stumpage fees.

I wouldn’t say it’s a successful argument. The market decides everywhere else based on harvesting bids made to the property owner with the highest bid winning. In Canada, it’s a (substantially lower) flat rate set by the government to harvest government owned timber.

 

[Allan]

I wouldn’t say it’s a successful argument. The market decides everywhere else based on harvesting bids made to the property owner with the highest bid winning. In Canada, it’s a (substantially lower) flat rate set by the government to harvest government owned timber.

Nope. Competitive bid process.

 

[Napoleon]

Nope. Competitive bid process.

Not exactly. The stumpage fee and bidding process is based primarily in the forest management interests of the government not market forces. It is not at all competitive with, for example, US bids which don’t take those things into consideration because the timber is privately owned.

 

[Allan]

Not exactly. The stumpage fee and bidding process is based primarily in the forest management interests of the government not market forces. It is not at all competitive with, for example, US bids which don’t take those things into consideration because the timber is privately owned.

Nonsense.

And what do you care if the result is lower prices in the US?

 

[MAGAnificent]

In the latest American self own they've decided to take a step that will add $15k to $20k to the price of building a home.

Only if built with Canuck lumber.

This is supposed to be in retaliation for Canadian softwood lumber subsidies but the government doesn't subsidize the industry.

Indirectly they are absolutely subsidizing the Canadian lumber industry.

The US does not have its own source of construction grade lumber as the map below shows.

BS. Looks like your map.

 

[Napoleon]

Nonsense.

And what do you care if the result is lower prices in the US?

For the same reason your government doesn’t want American dairy products in the Canadian market.

 

[ttwtt78640]

Nope. Competitive bid process.

Really?

Generally, Canada
does not primarily rely on competitive bidding for stumpage prices on its provincially-owned Crown lands.
Instead, Canadian provinces typically determine stumpage fees for timber harvested from Crown land based on administrative procedures and formulas. These formulas often consider factors such as end-product selling prices, harvesting and manufacturing costs, and allowances for risk and profit. Stumpage fees are also subject to monthly, quarterly, or annual adjustments based on end-product price fluctuations and reappraisals.
This contrasts with the United States, where stumpage fees on public land are often determined through a competitive bidding process. This difference in stumpage pricing systems is a significant factor in the ongoing softwood lumber dispute between the two countries, with the US arguing that Canada's system constitutes a subsidy to its lumber industry.

*above quote is from Google’s AI Overview*

Stumpage fees can be thought of as a type of royalty. They provide the cost per unit a private firm must pay to the landowner to extract timber. Historically, these fees were calculated per stump, hence the name stumpage. Today, most unit calculations use more accurate metrics like board foot or cubic metres. However, these stumpage fees are set administratively instead of by the market. This is in stark contrast with the United States, where stumpage fees are set in a competitive auction. Our southern neighbours use both an open auction, where all bids are public, and a sealed bid auction where each participant has only one, sealed bid to submit.

Lumber Tariffs in the Face of Reconciliation — IONA Journal of Economics

When will these tariffs end? A potential answer to this question is found by looking at recent reconciliation efforts and land-back movements. Indigenous nations are now the only group that can log old-growth, which represents the highest profit margin for any kind of forestry product.

www.ionajournal.ca

 

[Evilroddy]

Build Canadian homes with the lumber and export more to Europe.

Buy even less from the US and get ready to close the land border a few days before the US Congressional mid-term elections.

Be well and be safe.
Evilroddy.

 

[Brusan]

For the same reason your government doesn’t want American dairy products in the Canadian market.

Well not exactly the same reasons.

ALL U.S. farmers are indeed heavily government subsidized so they can indeed overproduce and sell under costs, ergo: DUMPING!

NO ONE receives gov't money in the process of growing or harvesting softwood in Canada. The costs to harvestors include re-foresting costs and road access.

 

[Luce]

Build Canadian homes with the lumber and export more to Europe.

Also Japan and Australia.

 

[Brusan]

Montana’s oldest family run Seeley Lake lumber mill announces closing citing labour shortages, rising costs, plummeting lumber prices as reasons. Does this make sense given Trump’s blocking off Canada’s supply?
One would think the lying, alleged “dumping” of cheaper lumber being curtailed would increase demand for domestic supply regardless of cost.