Trump slaps tariff on Canadian softwood lumber

Ya, Canada the big bully is soooo unfair to the U.S...what a full on retard.
What is the trade deficit between the U.S. and Canada I wonder? he kept blathering about Mexico's trade deficit during the election.

a reply to: HarryJoy

We have had just about enough of shipping our raw resources away..it might come down to survival though.

a reply to: HarryJoy

I doubt Irving is worried. They are only getting 3.02%.

Specific tariffs were applied to several companies: Canfor, 20.26 per cent; JD Irving 3.02 per cent: Resolute 12.82 per cent; Tolko 19.5 per cent; and West Fraser 24.12 per cent. All other Canadian producers shipping softwood lumber to the U.S. will face a blanket tariff of 19.88 per cent.

a reply to: vonclod

Yeah the big losers in this battle will be Irving's Canadian sawmill workers. At least when you guys were giving the lumber away....you still got the work of sawing the logs.

But at least the profits will be going back to Canada. Albeit into Irving's huge deep pockets.

a reply to: peck420

That's possibly because of their very large US holdings. They employ a sizeable number of US workers and own a very large chunk of the Northern Maine woods.

originally posted by: HarryJoy
That's possibly because of their very large US holdings. They employ a sizeable number of US workers and own a very large chunk of the Northern Maine woods.

I concur.

However, it does beg the question;

How will west coast retailers, that are supplied by west coast Canadian mills, respond? They have just been undercut by their own government.

a reply to: Phoenix

well National Association of Home Builders, seem to think otherwise.
1/3 of the lumber for housing comes from canada. in just the first three months since the 2006 trade agreement that has governed canadian imports ended the cost of new homes has increased 3600 dollars
when the people that build houses tell you it's coming, you can bet it will.

“Taking these steps to meet our nation’s lumber needs is essential because tariffs needlessly increase the volatility of the lumber markets, resulting in higher prices for U.S. home buyers and other consumers and businesses who use lumber,” said MacDonald.
Proposed Lumber Duties Will Harm Consumers, Housing Affordability

a reply to: hounddoghowlie

See they go us right where they want us. All the information in the world is useless if you can't believe it.

a reply to: peck420

Weyerhaeuser will jump in on the west coast like it's done for the past 100 years. They wanted a reason to go back anyway.
By me (wisconsin, north ) it means Saapi will be upping cutting on pine, spruce , fir- which will start problems between the two.

Our next big cut is scheduled for 2033, (Weyerhaeuser owns most of it) so anything Saapi can steal before that will be stolen.

Either way, lumber will go back up at your home depots' and menards / homeowners lumber yards.

a reply to: hounddoghowlie

Nahb and Nari both get huge stipends from Weyerhaeuser.

I'm an independent logger and homebuilder - you wouldn't believe how much I have to watch my ass in the woods everytime this crap starts.

Yeah and it makes me wonder how the heck can the Canadian firebombers come to the US with their airplanes working on fires when the US owned companies sit out on the ramp waiting to get the call.

a reply to: seasonal

it's the U.S fault for not allowing harvesting in national parks and other lands. and now as soon as i can find it again they are looking to south America for softwoods. until that happens we will be dependent on imports. adding tariffs to 1/3 off the supply makes no sense. it will increase cost.

and this from last year,

Given the positive outlook for the U.S. housing market over the next five years coupled with U.S. exports duties starting in Q2/2017, a surge in U.S. lumber prices is forecast – smaller in 2017 and then a larger price gain in 2018. Starting later in 2019, we expect a growing shortage of incremental lumber that will require Canadian lumber exports to the U.S. to increase slowly and steadily thereafter, mainly from Eastern Canada. By 2020, it is expected that North American logging and sawmilling capacity will start to lag with overall U.S. lumber demand, and coupled with steady increases in demand and punitive export duties on Canadian exporters – this should allow lumber prices to soar starting in 2020 and beyond. Did somebody say, “super-cycle?”
U.S. Export Duties on Canadian Lumber to Cause Market Chaos and Soaring Prices

if this continues past the 60 days when the next anti dumping decision is made on june 23rd, it will start a housing cost increase that hasn't been seen in many years.

This is the 5th time in the last 30 years that the US has taken on the Canadian Software Lumber industry. It has been taken far as the WTO and EVERY time Canada was shown to not be engaging in unfair trade. The Stumpage fee structure is DIFFERENT to the American system, but that has never made it unfair.

"Different" doesn't make it "wrong" or "unfair".

I'm all for a level playing field but taking on CANADA, our closest and most consistent ally, over an issue that has been prosecuted unsuccessfully so many times already seems like a waste of time and resources that could be better deployed elsewhere.

a reply to: hounddoghowlie

Yup word from the industry - of course they'll claim doom and gloom as it affects stockholder return.

Look truth is they give rats behind about cost so long as banks continue to finance.

A change in mortgage rates has huge impact, change in lumber not so much.

A place where 3000 foot home is $200,000 lumber price has an effect on sales price. A place where same 3000 foot home is $500,000 to $800,000 not much effect % wise and builders are vastly exaggerating the issue.

Building my own home right now using my own labor so as percentage lumber is large part of cost - I feel fine with the increase which directly affects me so long as it puts food on another Americans table.

a reply to: Phoenix

A change in mortgage rates has huge impact, change in lumber not so much.

change in lumber costs adds to cost of home. already up 3600 bucks in three months. a change in cost will cause a change in financing and mortgage rates causing them to go up. that will disqualify some people that qualified before the tariffs. and before the end of it, more than just a few that work in a related industry.

I find it a little disturbing Trump is starting a trade war with Canada. Keep your fingers crossed it works out ok.

In actuality this lumber issue "should " open up an avenue for hemp fiber composite lumber. Of course the timber industry will most likely not want to see a huge renewable resource come online to threaten there scarcity driven market.

a reply to: HarryJoy

I like it.

The Canadian government's reaction has been swift and unflinching:

a reply to: Natas0114

Nahb and Nari both get huge stipends from Weyerhaeuser.

that may be so, but in looking at the article i linked it would seem that they are urging the U.S. and canadian governments to work together for a fair solution, and open up... well here are their words.

NAHB believes the best way to resolve this trade impasse and avoid these negative economic repercussions is to:

Urge the U.S. and Canada to work cooperatively to achieve a long-term, stable solution in lumber trade that provides for a consistent and fairly priced supply of lumber.

Increase domestic production by seeking higher targets for timber sales from publicly-owned lands and opening up additional federal forest lands for logging in an environmentally sustainable manner.

Reduce U.S. lumber exports.

“Taking these steps to meet our nation’s lumber needs is essential because tariffs needlessly increase the volatility of the lumber markets, resulting in higher prices for U.S. home buyers and other consumers and businesses who use lumber,” said MacDonald.

so it would seem in reading this they stress that the U.S. do more for the U.S. timber industry than the canadian. in opening up land, and reducing lumber exports.

i also looked up Weyerhaeuser, they have almost as much timberland in the U.S. as they do in canada, 13 million acres in the U.S. and 14 million in canada. and being a U.S. based company, i would think that the if the NAHB were trying to influence the U.S. government to hold off on the tariff that they wouldn't be saying stop exports and open up land.