Commerce Cuts Canadian Softwood Lumber Duty Rates
The U.S. Commerce Department lowered countervailing duty rates on Canadian softwood lumber after a NAFTA panel accepted its recalculation of its 2017 finding.
Updated on Nov. 3, 2026 in International Trade
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The U.S. Commerce Department lowered countervailing duty rates on Canadian softwood lumber set in its 2017 investigation, with amended rates taking effect Thursday. The notice followed a NAFTA binational panel's acceptance of the department's second recalculation, ending a nine-year appeal by Canadian producers.
Why it matters
The change reduces the duties paid by several named Canadian lumber companies, though it does not alter the cash deposits they already paid at the border. Because the panel's decision required Commerce to announce a revised finding, the Federal Register notice is the formal step that puts the lower rates into effect.
Official Federal Register rates show the all-others countervailing duty falling to 12.80% from 14.19%, with Canfor at 12.49% (from 13.24%) and Tolko at 11.01% (from 14.85%). Antidumping duties of 10.64% and the 10% Section 232 tariff are unchanged, and it is not yet specified how previously paid deposits will be treated.
The players
U.S. Commerce Department
The federal agency responsible for administering U.S. countervailing duty investigations, including the 2017 subsidy finding on Canadian softwood lumber that the panel reviewed.
The details
The rate changes follow a NAFTA binational panel decision that sent parts of Commerce's calculation back to the department in 2024 and again in March 2026. The panel accepted the second recalculation on October 5, and the Federal Register notice was published Tuesday, with the amended rates taking effect Thursday.
Timeline
November 2017: Commerce issued its final subsidy finding on Canadian softwood lumber.
2024: The NAFTA panel first sent the calculation back to Commerce.
October 5, 2026: The panel accepted Commerce's second recalculation.
October 19, 2026: The NAFTA Secretariat formally closed the case.
Tuesday, November 3, 2026: The notice was published in the Federal Register.
Market Dynamics
The outcome shows how NAFTA's Chapter 19 binational panels, which let Canadian producers challenge U.S. trade rulings outside U.S. courts, can force recalculations of duties set in 2017. The lower rates come as the separate 10% Section 232 tariff on lumber imports remains in place, leaving the overall cost of Canadian softwood in the U.S. market largely intact.
For lumber companies and builders who buy Canadian softwood, the lower countervailing rates reduce a portion of the duty cost on imports from the five named producers. Stakeholders should watch for new deposit instructions from Commerce to U.S. Customs and Border Protection covering exporters not reviewed annually.
The takeaway
Lower rates reduce the duty bill for named Canadian producers going forward, but existing deposits and the separate Section 232 tariff still shape what buyers pay. Readers tracking lumber costs should watch Customs guidance on new deposit instructions.
Further reading
Track more developments in International Trade rulings affecting North American goods.
Source note: This article includes information reported by Lesprom Network.
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