Lumber Duties Could be Cut by More than 50% in August

Filed in Material Costs by on February 7, 2020 6 Comments

With lumber prices rising steadily since June 2019, a preliminary decision by the U.S. Department of Commerce to reduce duties by August on shipments of Canadian lumber into the United States is good news for home builders and home buyers.

The decision comes on the heels of the September NAFTA panel decision that found the U.S. International Trade Commission did not meet its obligations under U.S. law when it calculated countervailing and antidumping duties on Canadian softwood lumber. NAHB participated as an amicus in support of Canada’s challenge of the duties.

Currently, duties average more than 20% on Canadian lumber shipments into the United States. After conducting an administrative review, the Department of Commerce has issued a proposal in the Federal Register that could lower the countervailing and antidumping duties to just over 8%. A final determination will be made in August.

This latest development on the tariff front comes at a particularly opportune time, with the Random Lengths Framing Composite Price up more than 20% since last May.

Lower tariffs would mitigate uncertainty and associated volatility that has plagued the marketplace, which could help ease upward price pressure on lumber prices.

A recovering housing market is helping to fuel the increase in lumber prices. U.S. housing production in December hit 1.6 million units on a seasonally adjusted annual basis, the highest level since December 2006.

For more information, contact Felicia Watson at 800-368-5242 x8229.


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Comments (6)

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  1. Lawrence Burke says:

    great news for us home builders and new home buyers

  2. Bill B. says:


    Could you please explain how you came up with the direct correlation between the building of more homes directly increasing lumber pricing? (Last paragraph, first sentence)

    Where do you get the facts to back that up?


  3. BW says:

    I made it to the last two sentences and found the real reason for pricing – demand is driving price. I think I learned that in high school economics. Even then, lumber prices were almost half of what they were a year ago and about on average for previous years.

  4. Peter Berube says:

    Hi, I haven’t seen lumber as low as it is right now in years. I am in Massachusetts. Now if we could lower lot prices !.

    • Ben says:

      Tell me about it.
      Here in Houston area 1 acre lot is $100,000 per acre.
      I noticed a 1.25 acre being sold for $150,000.
      Cost are climbing in everything

  5. Brian says:

    Why do all these companies make huge profits and blame it on hurricane, covid and everything else. The lumber industry is making a fortune. Just remember. What goes around comes around. American greed

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