The United States has lowered the anti-dumping and countervailing duties it charges on most Canadian softwood lumber, in the latest round of the two countries’ long-running dispute over the building material. The US Department of Commerce announced the final results of its seventh administrative reviews on 14 October 2026, according to Global Affairs Canada.
For producers without their own rate, the combined duty falls to 24.75%, made up of 10.64% anti-dumping and 14.11% countervailing duty. After the sixth review in 2025 the equivalent rate was 35.16%. The British Columbia government says the new rates took effect on 19 October.
Rates by company
The biggest fall is for Canfor, whose combined rate drops to 31.11% from 47.59% after the previous review. West Fraser’s falls to 20.02% from 26.47%. Resolute, a mandatory respondent this time, is set at 25.55%. The final figures are close to the post-preliminary results Commerce published on 30 June, which put the “all others” rate at 25.18%.
Lower duties do not mean free trade. A separate 10% tariff on softwood timber and lumber, imposed on national-security grounds under Section 232 from 14 October 2025, remains in place. Kitchen cabinets and vanities carry a 25% tariff, scheduled to rise to 50% on 1 January 2027 after a one-year delay.
A ten-point cut in duties eases costs for US builders, but layered tariffs keep Canadian lumber firmly inside the trade war.
Litigation and the next review
On 5 October a binational panel under NAFTA Chapter 19 affirmed Commerce’s second remand determination in Canada’s challenge to the countervailing duty findings, which Global Affairs Canada says effectively concludes that case. Commerce has already begun an eighth review, covering shipments made in 2025, with Resolute and West Fraser selected as mandatory respondents.
Because duties are collected as cash deposits and later adjusted, each review changes the cost of Canadian lumber used in US home and commercial construction.
What to watch
- Preliminary results of the eighth review, covering 2025 shipments.
- Whether softwood lumber features in the 2026 review of the USMCA.
- The scheduled 1 January 2027 increase in Section 232 tariffs on cabinets and furniture.
