-5 C
New York
Saturday, January 22, 2022

U.S. Tariff On Canadian Lumber Hits Home And Abroad

U.S. Tariff On Canadian Lumber Hits Home And Abroad

Investing.com – While it’s too soon to say how the Trump administration’s bevy of new tariffs will impact various industries and the economy at large, a tariff on Canadian lumber import s imposed in late 2017 is certainly being felt by U.S. homebuilders.
After a year of investigation, the U.S. imposed a tariff of 20.8% on imports of Canadian softwood lumber, a key ingredient in the construction of new homes.
The tariff was meant to punish Canadian suppliers, who were judged to be selling below fair market value in the U.S., where they supply 95% of all imported lum ber.
The homebuilders association says the tariff is the major reason behind record high lumber prices, which have jumped almost 60% since the tariff became a possibility in early 2017.
And that’s translated into a $9,000 increase in the average cost of a new single-family home.
In one sense. the tariff has worked. Imports of Canadian lumber fell 15% in the first quarter from a year ago. The problem is U.S. production rose only 3% during that time. Experts say it will take years for the U.S. industry to ramp up production enough to compensate for the lost imports.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles