The United States Department of Commerce announced a preliminary average import tax of 20 percent on Canadian softwood lumber products, with rates ranging from 3.02–24.12 percent per producer, according to Construction Dive.
The decision comes after the Commerce Department initiated an antidumping and countervailing duty investigation on softwood product imports from Canada in December.
The tax collected is expected to total $1 billion a year on imports worth roughly $5 billion annually. The tax still needs to be finalized by the Commerce Department and confirmed by the International Trade Commission after hearing public comments.
Canada disagreed strongly with the tax.
“This decision will negatively affect workers on both sides of the border, and will ultimately increase costs for American families who want to build or renovate homes,” according to a joint statement from Canada’s ministers of natural resources and foreign affairs.