Last week, we reported in Nip Impressions that the U.S is moving to double tariffs on Canadian softwood lumber imports.
In the article, it states that "if finalized, will raise producer costs and cut into their profits but is unlikely to affect prices to consumers of wood products analysts say."
The president of the BC Lumber Trade Council stated in an article from CTV news in BC that to "double tariffs on Canadian softwood lumber is particularly egregious given the current record high lumber prices."
GlobeSt.com, a real estate news source, states in a recent article that "the National Association of Home Builders took aim at the US Commerce Department's desire to double tariffs on Canadian lumber shipments."
The article further states that "Lumber prices are already up more than 300% from a year ago. If the administration's decision to double tariffs is allowed to go into effect, it will further exacerbate the nation's housing affordability crisis, put even more upward pressure on the price of lumber and force millions of US home buyers and lumber consumers to foot the bill for this ill-conceived protectionist action."
Lesprom recently reported in an article interview with Russ Taylor, president of British Columbia based Russ Taylor Global, "that prices for lumber in the U.S. have quadrupled and the rise is spreading to other countries as well." Lesprom further reported the hike in lumber prices are associated with COVID-19 when shutdowns started in March of 2020.
Lesprom's article went on to state that "the high prices and the expensive lumber will continue this year and into next year. One of the comments I use is that "high prices cure or fix high prices", as high prices will eventually reduce demand and increase supply - high prices scare people away."
Helen Roush is Executive Vice President of Paperitalo Publications.