Posted on 04/24/2017 5:05:30 PM PDT by bobsunshine
The Trump administration is taking retaliatory action against Canada over a trade dispute, moving to impose a 20% tariff on softwood lumber that is typically used to build single-family homes.
In an interview Monday, Commerce Secretary Wilbur Ross said the tariff will be applied retroactively and imposed on Canadian exports to the U.S. of about $5 billion a year. He said the dispute centers on Canadian provinces that have been allegedly allowing loggers to cut down trees at reduced rates and sell them at low prices.
The determination that Canada improperly subsidizes its exports is preliminary, and the Commerce Department will need to make a final decision. In addition, the U.S. International Trade Commission will need to find that the U.S. industry has suffered injury. But even a preliminary decision has immediate real-world consequences, by discouraging importers from buying lumber from Canada.
We tried to negotiate a settlement but we were unable, Mr. Ross said, adding that previous administrations have also been unsuccessful in resolving the dispute.
(Excerpt) Read more at wsj.com ...
ping for later
President Trump is a man of action.
Leftist govt in Canadah raping the Earth?
What about newsprint?
Well, he did try the nice way first
I am Batman.
Quiet, swift and effective.
As Trump has said, other countries are ripping us off, and we have to stop it.
Now get that spotted owl out of the way....and WE can begin harvesting again.
The U.S. and Canada has gone through this same sh!t every few years for as long as I can remember. Interestingly, the U.S. loses this trade dispute almost every time it comes up before an international arbiter (World Trade Organization, NAFTA review board, etc.).
The real problem is that we have to import so much of this lumber...we need to open up our forests to more logging and let the spotted owl make do with less than 2,000 acres a pair. And we need to help open up more mills and make more of our own plywood products. It’s a shame to let our natural resources get tied up this way.
It's only resurfaced because the strength of the U.S. dollar allows Canadian producers to undercut U.S. producers on the price of almost any raw material or finished product.
They aren't in politics for the money.
Canada gives government owned timber away to loggers who just have to down it and sell in the USA since there’s no demand in Canada. And, the free trade religionists are having a cow. It’s raising prices! It’s destroying our globalist progress! And logging families from ME to NC to OK to WA will be off unemployment and OxyContin. Big win and such a tiny deal sets the tone worldwide now!
I suspect Canada always has a cost advantage simply because it's an enormous country and they have a lot more trees up there than we have down here.
Most likely in the woods out behind my house (there seem to be a lot of owls out there).
As Ian Malcolm said in Jurassic Park, "Life will find a way."
Canada is our biggest/largest trading partner. I don’t think that’s advisable.
P.S. — Over the last ten years Canada has been quietly seeing some huge growth in industries that the government has damaged or destroyed down here in the U.S. They’ve been eating our lunch in the lumber industry since we started making all decisions based on the spotted owl in the early 1990s. And I couldn’t believe how much coal mining activity I saw when I was out in western Canada last year.
Iam a resident of Eastern Canada. In New Hampshire I can more cheaply buy lumber milled in Atlantic Canada by J.D. Irving,than I can here at home.
Irving sells almost all of his lumber at reduced prices to Home Depot, in order to acquire US Dollars which are worth $1.35 Canadian. Then the lumber is sold back to Kent Building Supply in Atlantic Canada. The Canadian retail consumer pays a price which consists of profit plus a double cross border transaction opn the currency exchange.Thats what free trade in lumber has done for the Canadian Consumer of lumber. The lack of tarriff under FRee Trade is simply replaced by gouging the consumer to get both profit and favorable currency exchange, without selling the product directly to Canadian Consumers.Irving makes out like a bandit.
Irving has about an 80% monopoly of lumber production and marketing, unless one buys from small private sawmills, who can hardly keep up with local demand, but are just a very small portion of overall lumber production here in Atlantic Canada.
Trump slappong on a 20% tariff brings cheers from Canadian consumers. Maybe we will finally have cheaper lumber here at home?
Certain parts of British Columbia look like a giant checkerboard from all the clear-cuts when viewed in google satellite.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.