If you work in the New Brunswick forestry sector or rely on the local economy, you see lower costs the next time local wood producers ship softwood lumber to the United States.

A recent review by the US Department of Commerce reduced countervailing and antidumping duties. This change drops the total tariff rate for softwood lumber exporters to nearly 35 percent. Forestry officials managed a steep 45 percent rate over the past year.

Breaking Down the Costs

The new cost structure includes antidumping duties at 10.64 percent and countervailing duties at 14.11 percent. These combine for 24.75 percent in added costs. When you add the 10 percent national security tariff implemented by former US President Donald Trump, New Brunswick exporters pay just below 35 percent in import taxes to send goods south.

According to CTV News, the forestry industry drives a massive portion of the provincial economy. The sector contributes around $1.5 billion annually to the gross domestic product of New Brunswick and supports more than 25,000 direct and spin off jobs.

Industry and Government Reactions

New Brunswick Natural Resources Minister John Herron states the reduced tariffs provide relief but notes duty rates remain extremely high.

“The Government of New Brunswick is disappointed that the US continues to impose these unfair duties and tariffs on Canadian softwood lumber products,” Herron said in a statement. “New Brunswick continues to advocate for a trade deal between Canada and the US that includes softwood lumber and provides the predictability and stability that our softwood lumber industry requires to continue to trade with the US.”

Herron also pointed out the sector faces challenging market conditions. The recent idling of the AV Nackawic mill highlights these struggles.

Woodlot Owners Seek Stability

The New Brunswick Federation of Woodlot Owners views the tariff reduction as a helpful move for industry stability. However, President Rick Doucett says it remains unclear if this translates to better prices for woodlot owners.

“We often share in the bad times, but we don’t necessarily share in the good times,” Doucett said. “The amount of public wood that’s available and the access that buyers have to resources makes it very difficult to get a fair market price for wood.”

Doucett notes a very small percentage of harvested lumber stays in New Brunswick. Most of it ships to US markets. He believes returning to a total exemption on softwood lumber tariffs requires significant negotiation and effort. He admits this outcome is unlikely with the current administration in Washington.

“The challenge has always been, can we keep our people that work in the woods employed and making money, and that’s becoming less and less likely,” Doucett said.

Frequently Asked Questions

What is the new tariff rate for New Brunswick softwood lumber?

The total tariff rate is now just below 35 percent. This is a 10 percent drop from the previous 45 percent rate.

Why are the tariffs still so high?

The 35 percent total includes a 10.64 percent antidumping duty, a 14.11 percent countervailing duty, and a 10 percent national security tariff.

How does the forestry sector impact the New Brunswick economy?

The forestry industry contributes approximately $1.5 billion to the provincial gross domestic product every year and employs over 25,000 people.