The U.S. Department of Commerce announced in November 2017 that it found exporters in Canada and China sold lumber and hardwood products in the United States at less than fair market value. Consequently, the agency instructed Customs and Border Protection to collect tariffs from importers.
Commerce found that Canadian exporters sold softwood lumber at rates between 3.2% and 8.89% lower than fair market value, and provided “unfair subsidies” to Canadian softwood producers.
Prices for softwood lumber increased over 13% in 2017, according to the National Association of Home Builders. Commerce estimates the value of softwood lumber imports in 2016 was $5.66 billion.
The investigation into Chinese hardwood plywood products found exporters were selling products in the U.S. for 183.36% less than fair value, according to a press release. Chinese hardwood plywood producers received unfair subsidies of between 22.98% and 194.9%. Chinese hardwood imports were valued at $1.12 billion in 2016, according to the department.
Danielle Andrus was previously the managing editor for Colorado Builder, and is currently Editor for the Journal of Financial Planning.