Canadian Manufacturing

U.S. companies appealing for exemptions from softwood duties

Without certain dispensations, the companies said applying tariffs to protect U.S. softwood lumber producers would risk much "collateral damage" throughout the U.S. value chain



MONTREAL—Several American companies that rely on Canadian softwood say thousands of American jobs are at risk unless the U.S. Department of Commerce exempts them from hefty duties imposed on imported softwood lumber.

The U.S. owners of three bed-frame makers and a company that transforms yellow cedar into high-end products have appealed to Commerce Secretary Wilbur Ross to be exempted from 20 per cent average countervailing duties and impending anti-dumping charges on Canadian imports.

Without a dispensation, the companies said they would be forced to substantially raise prices, risking lower sales and job losses.

“Disruptions, even if temporary, will eliminate jobs in the U.S. and damage the financial stability of the U.S. mattress manufacturing base,” wrote Stephen McLaughlin, vice-president global sourcing for Kentucky-based Tempur-Pedic.

Similar letters sent by other companies were posted on the Department of Commerce website.

They said U.S. lumber mills that launched the trade action against Canada support its request, but the government said it would only respond when it issues its final duty determinations in about five months.

The mattress frame companies said the wood they need has small knots and fine grain, characteristic of softwood species grown in colder climates like Canada.

Oregon Industrial Lumber Products Inc. said it buys all its yellow cedar from British Columbia because none is produced in the U.S. besides small quantities in Alaska.

Owner Murray McDowell said companies like his will be “collateral damage” in the efforts to protect U.S. lumber producers.

“With no exclusions, we will be effectively run out of business,” he wrote.

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