B.C. forests minister projects U.S. tariffs, duties on softwood lumber could reach 55%
'A lot of love between California and British Columbia,' forests minister says on visit to Sacramento
British Columbia's forests minister has the support of the California Building Industry Association in fighting tariffs on Canadian lumber, which he says could soon rise up to 55 per cent.
Ravi Parmar spoke to reporters outside the California State Capitol building in Sacramento Friday morning during a trade mission aimed at showing how tariffs will hurt consumers on both sides of the border.
He said he heard in meetings with business and political groups that many people have been embarrassed by U.S. President Donald Trump's comments in support of tariffs and "they also recognize that the cost of doing business is going to go up with them."
Parmar started his trip with a visit to the California Department of Forestry and Fire Protection where, he said, he discussed how members of the B.C. Wildfire Service supported recent firefighting efforts in Los Angeles, and how the two agencies can work together in the future.
"There is a lot of love between California and British Columbia," he said.
He also said he heard from many people that Americans support a friendly relationship with Canada, even if that sentiment is not shared by policies coming from the White House, citing both formal and informal conversations.
In a joint statement released alongside Dan Dunmoyer, CEO of the California Building Industry Association, Parmar highlighted the benefits of cross-border trade in the lumber industry.
"There's no doubt that our American partners need B.C.'s quality softwood products, and any tariff will simply increase the costs to build much-needed housing," the statement reads.
"This is particularly true following the recent fires in Los Angeles. More than 16,000 homes and buildings were lost, an almost unimaginable tragedy. There are now predictions that housing and rental units will now become even more unaffordable."
Those comments echo previous warnings from Dunmoyer who has said "there aren't really any alternatives" to Canadian lumber used for homebuilding in the state because about 80 per cent of Californian land is owned by the federal or state governments and can't be logged.
Parmar's visit to California comes the same week that B.C. Premier David Eby, along with the premiers of Canada's other provinces and territories, visited Washington, D.C., to lobby the White House and other lawmakers.
Tariffs to hit lumber particularly hard: minister
Parmar told media that Trump's proposed tariffs and a scheduled jump in duties would up the tax on Canadian softwood lumber entering the U.S. from 14 per cent to between 50 and 55 per cent.
The Forest Ministry said in a statement that Parmar's calculation is based on the expectation that the current softwood lumber duty is set to double by the end of the year.
It says if the threatened 25 per cent tariff is added on top of that, the combined total on softwood exports to the United States will be closer to the 50 to 55 per cent estimate.
U.S. President Donald Trump delayed announcing his plans on a 25 per cent tariff on Canadian goods earlier this month to March 4.
"It's important for me to reiterate that the president has made several comments recently where he said that he doesn't require the trees of Canada. That's false. He gets a lot of trees from Canada, a lot of softwood lumber," Parmar said.
Canada's forestry sector has described the proposed tariffs as unnecessary and unwarranted, given that the United States currently meets only about 70 per cent of its homebuilding lumber needs domestically, while using Canadian lumber to fill the gap.
The U.S. raised duties on softwood lumber from Canada last August from 8.05 per cent to 14.54 per cent.
Kurt Niquidet, president of the B.C. Lumber Trade Council, says this already battered industry cannot take any more blows.
"Adding in increased duties and then potentially tariffs, that just makes B.C. less competitive ... particularly for our market going to the U.S.," Niquidet said. "So it's sort of been a layering effect of several different issues that have really impacted the sector."
Dunmoyer said his association is working alongside B.C. to ensure beneficial trade policies are understood by policy-makers, and that further levies will only increase building costs in the United States.
With files from Marcy Nicholson, Katie DeRosa and The Canadian Press