B.C.’s independent wood manufacturers decry retroactive U.S. softwood duties

In an aerial view, logs are seen stacked at Gorman Brothers Lumber sawmill, in West Kelowna, B.C., on Friday, April 4, 2025. (Darryl Dyck / The Canadian Press)

VANCOUVER — British Columbia’s independent wood product makers say hundreds of small- and medium-sized manufacturers may be forced to shut down in light of the latest decision from the United States to raise anti-dumping duties on Canadian softwood.

The province’s Independent Wood Processors Association says in a release that the U.S. Commerce Department’s decision this week to raise duties also includes a requirement for Canadian companies to retroactively remit duties for products shipped to the United States since Jan.1, 2023.

Association chair Andy Rielly says in a statement that the requirement to pay duties on products shipped in the last 31 months could not only force small B.C. producers to shut down, but may also threaten operators’ personal assets as they may have to risk using their homes as collateral to secure bonds to pay.

Rielly is urging the Canadian government to create support programs to make sure B.C.’s independent wood processors can keep workers employed and their companies running.

The U.S. Commerce Department said earlier in the week it will raise anti-dumping duties on Canadian softwood to 20.56 per cent, drawing the ire of several B.C. industry groups such as the B.C. Council of Forest Industries and the B.C. Lumber Trade Council.

The Independent Wood Processors Association says the the “all-others” rate affecting its members will be raised from 14.4 per cent to 27.3 per cent, with the possibly of another increase “in the coming weeks” potentially pushing the duties for their products to as high as 35 per cent.

“Until the Canadian government can negotiate a settlement to this long-festering dispute, we need a government support program to keep our workers employed,” Rielly says, adding an overall duty of 35-per-cent would force members to pay retroactive duties of 27 per cent on products already shipped.

Association executive director Brian Menzies describes independent wood product producers as “collateral damage” in the trade war, and says the only hope they have of avoiding the hit is either “a favourable appeal from the Canada-US-Mexico Agreement” or “pursuing a bilateral negotiated resolution.”

“We should not face export taxes or quotas,” Menzies says. ”Our raw materials are not subsidized, and we are too small to ‘dump’ our products in the U.S. market.

“We acquire logs and lumber at ‘arm’s length’ from various suppliers on the open market, just like claims made by members of the U.S. Lumber Coalition, and yet our Canadian companies along with U.S. consumers must pay these unfair and costly duties.”

Prime Minister Mark Carney had previously said that a future U.S.-Canada trade deal could include softwood lumber quotas.

This report by Chuck Chiang of The Canadian Press was first published July 26, 2025.