What's the Tariff on Lumber (Softwood)?
Canadian softwood lumber with stacked duties.
Current Tariff Rate
39.5%
Pre-2025 Rate
14.5%
Rate Increase
+25pp
Price Impact
+40%
+$158
Real-World Price Impact
Before Tariffs
$400
1000 board feet
After Tariffs
$558
1000 board feet
That's $158 more per unit — a 40% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Softwood lumber's 39.5% combined tariff represents one of the oldest and most intractable trade disputes in US-Canada relations, stretching back to the 1980s. The core issue: Canadian provinces own 94% of forestland and charge lumber companies below-market "stumpage fees," which the US argues constitute illegal subsidies. Five rounds of the Softwood Lumber Agreement have failed to permanently resolve this dispute. The current tariff stacks a 25% IEEPA duty on top of existing 14.5% countervailing duties, creating a nearly 40% barrier. The housing market bears the brunt: the NAHB estimates every ,000 increase in lumber costs adds ,700 to the price of a new home. With the US housing shortage estimated at 4-7 million units, the lumber tariff directly contradicts the administration's stated goal of increasing housing affordability. Domestic mills in the Pacific Northwest and Southeast cannot fill the gap — US timber harvests have been declining since the 1990s spotted owl restrictions.
📦 Supply Chain
Primary Origin
Canada
Made in USA
65%
Import Volume
4.2B
Alternatives
European spruce (limited), domestic expansion constrained
📅 Tariff Timeline
1982
First US softwood lumber petition against Canada
Investigated2006
Softwood Lumber Agreement IV provides temporary peace
0-15%2017
CVD/AD duties reimposed after SLA expiration
14.5%2025-Feb
IEEPA adds 25% on top of existing CVD duties
39.5%👥 Consumer Impact
Households Affected
6M
Annual Cost Per Household
,800
💡 Did You Know?
- •The US-Canada softwood lumber dispute has been ongoing since 1982 — it is the longest-running trade conflict between the two nations
- •Every ,000 increase in lumber costs adds approximately ,700 to the price of a new single-family home
- •Canada's British Columbia alone contains more softwood timber than the entire US Pacific Northwest combined
Tariff Details
- HTS Code
- 4407.11
- Current Rate
- 39.5%
- Pre-2025 Rate
- 14.5%
- Tariff Type
- IEEPA + CVD
Legal Authority
IEEPA + CVD
Effective: 2025
Tariff imposed under presidential trade authority
The tariff on Lumber (Softwood) is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 39.5% tariff on Lumber (Softwood) is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 39.5% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $400 → $558
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