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Another chapter in the ongoing softwood lumber dispute between the United States and Canada was opened on September 1. Canada’s Trade Minister Mary Ng announced that Canada was launching a Chapter 10 United States-Mexico-Canada Agreement (USMCA) challenge to the latest countervailing duties (CVD) in place on importations of softwood lumber into the U.S. Additionally, a suit is being filed by Canada in the U.S. Court of International Trade to challenge the antidumping duties (ADD) on softwood lumber from Canada also now in effect.
The dispute goes back to 1981 when the U.S. lumber industry first requested the Department of Commerce to investigate Canadian stumpage programs and impose countervaling duties. The issue is rooted in the fact that most Canadian land where softwood lumber is harvested from is owned by provincial governments, and the fees charged to harvest timber on the land, or the stumpage rates, are set by government regulation. In the United States, most softwood timber land is privately owned and the stumpage rates are determined by market forces. U.S. lumber companies have long claimed that the stumpage rates charged to harvesters by the provinces in Canada are well below market rates and are, therefore, countervailable subsidies. An agreement to suspend the application of any ADD or CVD that had been in effect expired in 2015, and the battle has raged on ever since. The World Trade Organization (WTO) ruled in favor of Canada in 2020 and stated that the United States CVD measures were not in conformity with its WTO obligations. However, the U.S. has ignored that determination for the most part. Talks between the leaders of Canada and the U.S. in Ottawa earlier this year did not break the impasse.
On February 11, 2025, the President issued a proclamation regarding the importation of steel and aluminum articles, increasing tariff rates to 25% from all countries. As part of that proclamation, it was announced that there would be expanded 25% tariffs to include key downstream products (derivatives) for both steel and aluminum. The Annex containing those products has been drafted and is expected to be officially published in the Federal Register on February 18, 2025.
Key Points:
• There are 167 new codes for steel downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 4 different chapters of the HTSUS).
• There are 123 new codes for aluminum downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 11 different chapters of the HTSUS).
To read the draft Federal Register, and access our Excel listing of HTS affected, click the links below:
For February, we are highlighting Jacquelyn Bakker, our CHB Manager in the JAS Chicago office. Jacqulyn started her career in the industry in 2012 in an accounting role before moving into the brokerage side in 2014. In her words, that’s when she “found my niche.” Jacquelyn joined JAS in 2018. After being named as the Brokerage Supervisor, Jacquelyn decided to take on the “daunting task” of obtaining her broker’s license. After 3 months of studying, Jacquelyn was able to pass on the first try! Jacquelyn manages a team of 6 entry writers in our Chicago branch and CHB manager. Jacquelyn is detail oriented and attentive to the needs of her clients internally and externally!
Jacquelyn has a 19-year old daughter, loving fiance and 2 dogs at home. She enjoys family time BBQing in the summer, taking the dogs for longs walks, playing Pokemon Go with family and seeing movies in the theater.
Jacquelyn is yet another great example that People Make the Difference!
CBP is leading global efforts in combating forced labor by imposing import bans on goods produced with forced labor. This has inspired international action, including the European Union’s adoption of similar measures and the inclusion of forced labor prohibitions in the USMCA. CBP’s actions have also driven labor reforms, notably in Malaysia, which launched a National Action Plan on Forced Labor and ratified an international protocol to combat forced labor. These advancements demonstrate CBP’s significant influence in shaping global supply chain accountability and driving positive change.
Read more about it by checking out the link below:
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