A new duty order nearly triples the rate of anti-dumping duties on Canadian softwood lumber imports, hiking the rate from 7.66% to 20.56% following the U.S. Department of Commerce’s annual review of existing duties.

The increase will be in addition to the current countervailing duties set at 6.74%, bringing the total lumber duties above 27%.

The U.S. International Trade Administration announced the decision, citing final results of “the sixth administrative review of the antidumping duty order on softwood lumber from Canada.” It stated U.S. Customs and Border Protection has been instructed to begin collecting duties at the new rates outlined.

The levies might increase further when the Commerce Department announces its final administrative review of the countervailing duty order on Aug. 8.

In March 2025, the department issued a preliminary determination on countervailing duties earlier that would raise the countervailing duty rate to 14.38%. All together, that could bring the total levies on Canadian softwood lumber up to 34.6%.

These changes come after the department determined earlier this year that Canadian lumber was subsidized by the Canadian government and was being dumped on the U.S. market.

On top of this, there is another potential hike above the combined anti-dumping and countervailing duties. In March 2025, President Donald Trump directed the Commerce Department to examine whether lumber imports represent a threat to national security under Section 232 of the Trade Expansion Act. The results of those findings could result even higher levies on Canadian lumber.

The National Association of Homebuilders (NAHB) has expressed disappointment in the decision, stating that it has been “leading the fight against lumber tariffs because of their detrimental effect on housing affordability. In effect, the lumber charges act as a tax on American builders, home buyers and consumers.”

One group that fully supports the increase is the U.S. Lumber Coalition (USLC), an alliance of large and small softwood lumber producers from around the U.S. Andrew Miller is chair of USLC, and is owner of Stimson Lumber based in Portland, Ore. He said in a press release that the higher levies demonstrate the severity of dumping and the “frankly disgraceful behavior by Canadian exporters in the U.S. market.”

Miller added, “Canada’s unfair trade practices come at the direct expense of U.S. companies, workers and communities.”

Softwoods are defined as evergreens or coniferous trees such as douglas fir, spruce, hemlock and pine. If Canadian softwood lumber imports are slowed, it would fall on the U.S. to replace the supply domestically. Top-producing states for lumber are typically Oregon, Washington, California, Idaho, Montana and Alaska.

Ryan Rodruck of the Washington State Department of Natural Resources explained to Scotsman Guide how the state’s timber production was tied to its fiduciary responsibility to its trust beneficiaries, which dates back to the establishment of its statehood in 1889. So it is different than private companies’ roles and not an apples-to-apples comparison. But the state establishes a sustainable harvest level every decade, and can adjust it annually by up to 25% to respond to market demands or fluctuations.

If there is a demand for the state to ramp up its harvesting, Rodruck said it’s a decision that can be made by the State Lands deputy in consultation with regional leadership. “However, it’s exceedingly rare. The Department of Natural Resources has strict environmental reviews and it takes a long time to prepare sales for harvest.”

Meanwhile, Canadian officials have expressed concern that the duties will be harmful for both Canadians and for the U.S., calling them unfair and unjust.

“It’s deeply disappointing that the United States continues to impose unwarranted duties on Canadian softwood lumber. These duties are hurting people on both sides of the border, with the forestry sector being unfairly targeted,” Ravi Parmar, British Columbia’s Minister of Forests told Scotsman Guide in an email. “The U.S. cannot supply its own market, and when softwood duties are applied to the wood needed to build American homes, it increases the cost of buying a home. At a time when many people already see affordable homeownership as a fleeting dream, Americans should be disappointed to see their representatives choose to add costs to put those dreams out of reach.”

The British Columbia Lumber Trade Council released a statement on the duties, expressing deep disappointment in the decision. It described it as “yet another example of ongoing U.S. protectionism at a time when cross-border cooperation should be a shared priority.”

Another trade group in British Columbia, the BC Council of Forest Industries (COFI), also strongly condemned the duties. “We call on the Government of Canada to make resolution of the softwood lumber dispute a top national priority. But this latest escalation also underscores a hard truth: we cannot wait for the U.S. to act.”

Officials in the province of Ontario are also pushing pack.

“These duties disrupt industries, drive up costs and put our shared competitiveness at risk. Continued duties on Canadian softwood lumber exports are an unjust burden which limit productivity, raise construction costs and make homes less affordable for American families,” said a joint statement from Ontario’s Associate Minister of Forestry Kevin Holland, Minister of Natural Resources Mike Harris and Minister of Economic Development Vic Fedeli. “Ontario and the U.S. trade together and build together. We remain firm in our position that these duties should be lifted entirely.”