U.S. lumber production gains ground as Canadian imports decline

Stronger enforcement of U.S. trade laws, combined with the application of Section 232 tariff measures, has contributed to a significant reduction in Canada’s share of the U.S. softwood lumber market, according to the U.S. Lumber Coalition.

The organization reported that Canadian market share has declined from 32% in 2016 to an average of 18.6% in the most recent quarter of available data. This decrease has been attributed to trade actions taken against what are described as unfairly traded Canadian softwood lumber imports, as well as the introduction of tariff measures.

The U.S. Lumber Coalition highlighted that Canada’s excess lumber production capacity continues to play a central role in its export dynamics. According to the organization, federal and provincial subsidy programs have supported this excess capacity, allowing Canadian producers to maintain high export volumes.

“The latest Canadian market share data demonstrates that Canadian imports can and should be replaced by U.S. production. More U.S. lumber produced by U.S. workers to provide a more stable domestic supply of lumber for U.S. housing is a win for American forestry workers and communities,” stated Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition.

The Coalition also noted that multiple U.S. administrations have investigated Canadian softwood lumber trade practices over several decades, concluding that Canadian producers benefit from subsidies and have engaged in dumping practices.

“The most recent USMCA panel decisions likewise have concluded that Canada engaged in dumping, is subsidizing its softwood lumber industry, and that Canadian softwood lumber imports are harming U.S. softwood lumber producers,” van Heyningen added.

According to the Coalition, Canada’s domestic lumber consumption is estimated at approximately 7 billion board feet, compared with a production capacity of around 27 billion board feet. The resulting surplus is largely exported, with the United States being a primary destination.

The organization emphasized that continued enforcement of trade measures, including Section 232 tariffs, is necessary to further reduce Canadian market share and support domestic production, employment, and supply chain stability in the United States.

The U.S. Lumber Coalition represents a broad alliance of American softwood lumber producers, their employees, and woodland owners, advocating for the enforcement of trade laws to address what it considers unfair competition and to support the long-term development of the domestic industry.