Trump Plans To Impose Tariff On Imports of Canadian Softwood Lumber -- Update
April 24 2017 - 8:00PM
Dow Jones News
By Peter Nicholas
The Trump administration is taking retaliatory action against
Canada over a trade dispute, moving to impose a 20% tariff on
softwood lumber that is typically used to build single-family
homes.
In an interview Monday, Commerce Secretary Wilbur Ross said the
tariff will be applied retroactively and imposed on Canadian
exports to the U.S. of about $5 billion a year. He said the dispute
centers on Canadian provinces that have been allegedly allowing
loggers to cut down trees at reduced rates and sell them at low
prices.
The determination that Canada improperly subsidizes its exports
is preliminary, and the Commerce Department will need to make a
final decision. In addition, the U.S. International Trade
Commission will need to find that the U.S. industry has suffered
injury. But even a preliminary decision has immediate real-world
consequences, by discouraging importers from buying lumber from
Canada.
"We tried to negotiate a settlement but we were unable," Mr.
Ross said, adding that previous administrations have also been
unsuccessful in resolving the dispute.
He said the Trump administration has notified Canada of its
decision.
Write to Peter Nicholas at peter.nicholas@wsj.com
(END) Dow Jones Newswires
April 24, 2017 19:45 ET (23:45 GMT)
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