U.S. rekindles trade conflict with Canada over lumber

But Ross also added that the softwood lumber action was decided on its own "merits".

With Canada and the United States at war over softwood lumber, the Liberal government decided the time was right to look eastward for a new customer: China. In ruling after ruling since 1983, worldwide tribunals have disproved the unfounded subsidy and injury allegations from the USA industry.

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The Trump administration announced on Monday that it is planning to impose a roughly 20 percent tariff on softwood lumber imported from Canada, a new escalation of trade tensions with America's northern neighbor.

That's what he wrote the morning after his government announced initial duties up to 24 per cent on Canadian lumber, with more expected later this year.

U.S. Secretary of Commerce Wilbur Ross said Canadian lumber companies were being unfairly subsidized, forcing the U.S.to react.

What comes next on softwood is a study of separate anti-dumping duties, followed by a final verdict by the U.S. Commerce Department as early as September 7, and then one of three possible outcomes: a negotiated agreement, a surprise retreat from the U.S. government, or a potential years-long court battle.

The preliminary determination was made in response to a petition filed in November 2016 by the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (COALITION).

The value of the forest sector to Alberta's economy is approximately $5 billion, according to Mulligan. About 19,000 people work directly in forestry in Alberta, with another 38,000 depending on the industry, he said.

"There's jobs on the line in Alberta communities", Mulligan said Tuesday in an interview with CBC Radio's Edmonton AM.

In Quebec, the forestry industry accounts for 60,000 jobs and 180 businesses. The White House's daily briefing began with exchanges about the most arcane Canadian trade issues, like stumpage fees from public land and dairy regulations that have limited imports of milk proteins.

Canada's government condemned the announcement. In a statement, the federal government called the move unfair, baseless, unfounded and it promised help for its industry. Canada "will vigorously defend the interests of the Canadian softwood lumber industry, including through litigation", the ministers said. "Included in there is lumber, timber and energy".

The two cases will result in a combined duty rate, which won't come until next winter.

That changed about a year ago, when Canadian dairy farmers persuaded regulators to create a new lower-priced class of industrial milk as an incentive to get dairies to produce protein substances in Canada, using Canadian milk.

In Central Canada, sawmills tend to be smaller, don't have as much cash flow to pay duties and are therefore more at risk of closing, experts say. A report in the Toronto Star on Monday evening said Canada did not immediately plan to retaliate.