The US lowers tariffs on Canadian softwood lumber, intensifying the battle between China and the US for Canadian lumber

The U.S. Department of Commerce (DOC) recently announced a reduction in the anti-dumping tariffs on some cork products imported from Canada.September 24, 2024is now in effect and has been published in the Federal Register.

Compared with the previous tax rate, the new tariff is slightly lower, as follows (the table shows the adjustment):

The tariff revisions are the result of the final determination of the fifth administrative review, which was initially issued onAugust 19, 2024The release of the new announcement means that the cork trade between Canada and the United States will usher in new changes, which may have a profound impact on the international market.

LumberFlow Expert Interpretation

1. Impact on the North American lumber market：The tariff reduction will enable Canadian lumber to enter the U.S. market at a lower price, boosting U.S. demand for Canadian lumber. In the short term, this will help stabilize lumber supply and prices in the North American market. However, the increased U.S. demand for Canadian lumber may further intensify competition between China and the United States for lumber resources, especially when supply is tight and the United States may take up more Canadian supplies.
2. Impact on China's timber imports：As the demand for Canadian lumber grows in the United States, Chinese buyers will face greater competitive pressure, which may lead to higher prices for Chinese lumber imported from Canada. In addition, tight supply chains will require Chinese importers to more actively seek alternative sources of supply or renegotiate contracts to ensure a stable supply of goods.