28 American Journal of Transportation American Journal of Transportation ajot.com North American forestry divided US–Canada trade conflict deepens longstanding divides as bordering states bear the brunt. By Julie Gedeon, AJOT (DIVIDED – continued on page 30) North–South flow of soft- wood lumber, pulp and other wood products continues to decline as the US–Canada trade dispute persists. While Canadian forestry representa- tives hope to return to nego- tiations to preserve highly integrated cross-border mar- kets, their American counter- parts favor protectionist tariffs with key exceptions. Canadian softwood lumber currently faces a 10% Section 232 global tariff with com- pany-specific anti-dumping and countervailing duties ranging from just under 21% to 35%, for combined rates of 31% to 45% depending on the producer. The American Loggers Council (ALC) supports tariffs as essential to safe- guarding and growing the US industry. “For the past 22 years of my involvement – the last 17 in Minnesota – I’ve seen railcar after railcar head south with Canadian lumber and go back empty,” Scott Dane, the council’s executive director, says. “This has to change, but we realize the cross-border com- merce between New England states and Canada is highly interdependent and excep- tions must be carved out for some bordering areas.” Maine’s Governor Janet Mills has criticized the US tariffs for leading to the tem- porary layoff of 144 workers at one mill which tradition- ally received pulp from New Brunswick, and the canceled redevelopment of another former mill that would have created 125 new jobs. Builders in Massachu- setts and other northern states have lamented the steeper costs of materials for hous- ing, custom cabinetry and other purposes. In Ohio, the levies have contributed to record-high pricing for homes in metropolitan areas, such as Columbus. The council maintains the US industry can effi- ciently supply these markets in relatively little time, after better communication with builders, and additional gov- ernment support. Dane says the $80 million in loan guar- antees announced by the US Department of Agriculture in July to expand domes- tic timber production and improve forest health is a start but insufficient. He notes the Canadian government’s $2.5 billion commitment to retool and transform its forestry and softwood lumber sectors. “The US government needs to invest more in its domestic timber industry to remain competitive,” Dane says. “Reducing import vol- umes from Canada, Brazil and Europe will also help.” Canadian softwood lumber entering the US over the past 12 months has declined from 28% to 18%. “And there’s been no appreciable change in the cost of lumber,” Dane adds. Derek Nighbor, president and CEO of the Forest Prod- ucts Association of Canada (FPA), says impacts are sig- nificant where near-border industries have become inte- grated supply chains. “The trade war has thrown all this into chaos, creating losers on both sides,” he emphasizes. Homebuilders for years have embraced the affordable FOREST PRODUCTS 2026 FOREST PRODUCTS 2026 One of North America’s Largest Terminal and Logistics Networks Operating 106 marine terminals across 30 states and provinces
View this content as a flipbook by clicking here.