The Biden administration is looking to double tariffs on Canadian lumber.<\/p>\n\n\n\n
The White House first announced the possibility of raising tariffs back in May of 2021. The idea is to raise tariffs on lumber from Canada from 9-percent to 18-percent, in order to \u201clevel the playing field\u201d because of what the administration calls unfair trading practices by Canada.<\/p>\n\n\n\n
As there is with a lot of items today, there is also a lumber shortage that dates back to the pandemic. The shortages are forcing the cost of building new homes to go up, according to a statement written in May by Chuck Fowke, the chairman of the National Association of Home Builders.<\/p>\n\n\n\n
\u201cIf the administration\u2019s decision to double tariffs is allowed to go into effect, it will further exacerbate the nation\u2019s housing affordability crisis, put even more upward pressure on the price of lumber, and force millions of U.S. home buyers and lumber consumers to foot the bill for this ill-conceived protectionist action,\u201d Fowke said.<\/p>\n\n\n\n
\u201cThings have been happening for a while and it\u2019s bad policy at the federal level that caused a lot of interests to move overseas and now we have supply chain issues,\u201d said Rep. Victoria Spartz (R-IN) to Indy Politics. \u201cNow the Biden administration wants to double tariffs on lumber from Canada.\u201d<\/p>\n\n\n\n
The Trump administration raised tariffs on Canadian lumber to 20-percent in 2017 as part of his sweep of tariff increases but lowered those tariffs to their current level of 9-percent in 2020 during the pandemic. The reasoning was similar to the Biden\u2019s: unfair trading practices by Canadian wood producers.<\/p>\n\n\n\n
Spartz said now is the worst possible time to raise those tariffs again.<\/p>\n\n\n\n
\u201cThat is the worst time when we already have an increase in prices,\u201d she said. \u201cIt\u2019s just strange for me to see when we have all these challenges we put more bad laws and policies into place.\u201d<\/p>\n\n\n\n
U.S wood producers are actually in favor of the proposed increases.<\/p>\n\n\n\n
\u201cA level playing field is a critical element for continued investment and growth for U.S. lumber manufacturing to meet strong building demand to build more American homes,\u201d said Jason Brochu, U.S. Lumber Coalition Co-Chair and Co-President of Pleasant River Lumber Company in a news release.<\/p>\n\n\n\n