The U.S. Department of Commerce has proposed increasing the anti-dumping duty on Canadian softwood lumber from 7.66% to 20.07%, nearly tripling the rate set three years ago. This comes in addition to countervailing duties of 6.74%, bringing the total potential levies to almost 27%. The announcement adds to growing uncertainty in the Canadian forestry sector, with further U.S. tariff threats on the horizon.

The BC Lumber Trade Council condemned the proposed duty hike, arguing it is unjustified and will negatively impact workers and communities in Canada while also driving up lumber prices for U.S. consumers. Industry leaders say the uncertainty is forcing companies to delay investment and operational decisions.

B.C. Premier David Eby criticized the move, calling it a "massive threat" to the province's forestry sector. He warned that the additional duties, combined with U.S. President Donald Trump's recent order for a national security investigation into lumber imports, could further disrupt the industry. Trump confirmed on Monday that tariffs on Canadian imports would take effect as planned.

Among the hardest-hit companies, Canfor's anti-dumping duty is set to rise from 10.44% to 34.61%, while West Fraser's rate will increase from 5.04% to 9.48%. Industry representatives have until August to respond before the final decision is implemented, with an appeal expected.

The U.S. justifies anti-dumping duties by claiming Canadian lumber is sold below market value, while countervailing duties are imposed over alleged subsidies. The Canada-U.S. softwood lumber dispute has persisted for decades, with both governments repeatedly clashing over trade policies.