Scrim, on 25 April 2017 - 06:57 AM, said:
Trump to impose tariff on product-dumping Canadians criminally manipulating market with illegal softwood lumber.
softwood lumber has been a long time issue between Canada and the US and isn't something new with Trump.
The issue is basically that most trees in Canada are on publicly owned Crown land and the lumber companies pay the Canadian government to log on those lands. The US says that the Canadian government doesn't charge enough to those companies and that represents an unfair subsidy from the government. Historically the US imposes tariffs prompted from complaints from the US lumber producers. Canada appeals the tariffs to the tribunals set up in our trade agreements and Canada almost always wins. In the mean time lumber prices in the US are higher than they otherwise would be and the prices to build a house in the US is thousands of dollars higher than it needs to be.
Winners - US Lumber Producers
Losers - Canadian Lumber Producers
- Everybody else in the United States since houses and other lumber products become much more expensive than they need to be.