Some believe another wave of bad news could come in the form of a separate anti-dumping duty on softwood, the renegotiation of the North American Free Trade Agreement or a proposed border tax on all imported goods.
Freeland also says she is optimistic a new softwood lumber deal can reached, and that it will be a win for Canada and the United States. “Everyone thinks of Canada being wonderful and civil”, Trump told a roundtable of farmers at the White House. “It’s a long time coming and frankly this is in my view and the BC Green view nothing more than a political stunt to show power and apparent leadership on a file that has been neglected for many many years”.
Trump referenced the crisis on Twitter a day after announcing the tariffs: “Canada has made business for our dairy farmers in Wisconsin and other border states very hard”.
The Commerce Department, in announcing its preliminary ruling late Monday, said that so-called countervailing duties ranging from 3 percent to 24 percent would be applied retroactively on five Canadian lumber exporters. The move would affect $5.66 billion (5.18 billion euros) worth of imports of the construction material, increasing construction costs in the US.
Later Tuesday, the prime minister and president spoke by phone.
“I look forward to working with the administration to pressure and persuade the Canadians to reverse this unwise policy, which is a violation of our agreements”, Mr. Schumer said in a statement.
“It’s not like if it’s too expensive we’re just going to skyrocket in price, we’re just gonna use the next cheapest thing that is suitable for what we’re using it for”, Dorn, Jr. said.
Unlike past disputes, negotiations around softwood lumber could get caught up in wider trade disputes, when Canadian and American negotiators sit down to renegotiate NAFTA this fall.
Clark said BC would continue to seek more overseas markets for its lumber. Canadian officials warned that U.S. home builders would be hit hard by the new lumber tariff, as it could spike the cost of supplies they use for construction.
She made clear that the current United States market needs are not met by USA producers, and that any tarrifs imposed on Canadian softwood will hurt U.S. consumers the most.
The two countries found themselves on a collision course over lumber – a subject that has irritated bilateral relations for decades – after a previous agreement had expired.
“Now that President Trump has imposed tariffs, Canadians want to know how the Liberal government will respond”.
It says Trudeau “refuted the baseless allegations” by the U.S. Commerce Department about Canadian lumber.
“If NAFTA were functioning properly, you wouldn’t be having these kinds of very prickly and unfortunate events back to back”, Ross said. “So, in that sense, it shows that NAFTA has not worked as well as it should”, Ross said.
Grassland Dairy Products announced earlier this month the farms would be without a milk buyer beginning May 1 due to lost contracts with Canadian buyers.
Canada is a big market that it does not have a lot of access to.
Democratic Senators Amy Klobuchar and Al Franken of Minnesota celebrated the lumber tariffs as “welcome relief” for workers and rural communities in their state.