Canadian Softwood Lumber Duties Unchanged Following NAFTA Panel Ruling
The NAFTA ruling concludes a longstanding legal challenge without changing current Canadian softwood lumber duties. However, the expected seventh-review results could soon alter applicable rates.
A North American Free Trade Agreement (NAFTA) panel has affirmed the U.S. Department of Commerce’s revised 2017 countervailing duty determination, leaving Canadian softwood lumber duties unchanged for now.
The decision, which was issued on October 5, 2026, and published in the U.S. Federal Register on October 13, effectively concludes Canada’s challenge to the original determination.
However, Commerce could announce new duty rates soon, with the seventh administrative reviews expected to conclude in October 2026.
The dispute concerned Commerce’s original determination that certain Canadian softwood lumber products benefited from countervailable subsidies.
Following earlier panel reviews, Commerce revised its determination. The panel has now affirmed its second redetermination.
According to Global Affairs Canada, the decision effectively concludes this challenge.
The case continued under NAFTA Chapter 19 because it was initiated before CUSMA replaced NAFTA in 2020.
The ruling does not change the cash-deposit rates established through the sixth administrative reviews.
Current combined antidumping and countervailing duty rates include:
Certain products are also subject to a separate 10% Section 232 tariff, which applies in addition to antidumping and countervailing duties.
These duties are generally payable by the U.S. importer of record, although Canadian exporters may also bear the costs depending on their commercial arrangements.
The current rates remain in effect for companies covered by the seventh administrative reviews until Commerce publishes the final results, expected in October 2026.
Preliminary results indicate potentially lower combined rates, which are not yet effective and may change before the final results are published.
Commerce has also initiated its eighth administrative reviews, which could result in further rate adjustments.
Cole International provides trade consulting and customs brokerage services to help Canadian businesses understand applicable U.S. duties, assess tariff exposure, and navigate cross-border trade requirements.
Reach out to one of our trade professionals to review the duties affecting your shipments and ensure your business is prepared for potential changes to trade measures.