Trying to keep track of the latest developments in trade between the U.S. and Canada is a daunting task, especially when it comes to lumber.
Even as the two countries appear to have stepped back from the ledge when it comes to retaliatory tariffs – at least for now – lumber continues to be in the crossfire of cross-border trade.
In late August, Canadian prime minister Mark Carney announced his country would be removing many tariffs as “a goodwill gesture designed to restart stalled trade talks.” Even though Canadian lumber is still being hit with 35 percent tariffs separate and apart from any other negotiations, the easing of relations between the two countries could signal renewed optimism going forward.
The Canadian moves follow similar actions by the U.S. government although Canadian tariffs on U.S. autos, steel and aluminum will remain for now, Carney said. He added that the U.S had said it would not impose tariffs on Canadian goods that were compliant with the three-nation U.S.-Mexico-Canada free trade agreement, which he called “a positive development.
“In this context and consistent with Canada’s commitment to USMCA, I am announcing today that the Canadian government will now match the United States by removing all of Canada’s tariffs on U.S. goods specifically covered under USMCA,” he said. “Canada and the U.S. have now re-established free trade for the vast majority of our goods.”
Still a deal between the two countries could be a far off, a former Canadian government official said in a recent interview. “Getting to a final deal isn’t going to be easy. The list of U.S. demands is long,” said Brian Clow, who was in charge of U.S. relations under former prime minister Justin Trudeau’s office for several years. The USMCA, which replaced the former NAFTA agreement, officially comes up for review in July 2026, six years after it entered force on July 1, 2020. Carney said the review is likely to start in the spring but preparations will begin shortly.
