Canadian lumber imports slapped duty by U.S Customs

The U.S imposed a duty tax of 29% on Canada's Softwood lumber. The action comes as a result of The U.S accusing the Canadian government of unfairly subsidizing the Lumber companies. The low rate charged by the Canadian government for cutting on crowned-owned land is deemed as the "unfair" foreign competition.

The duty imposed has hurt the Canadian lumber company profit share as well altered the amount of employed people. Apparently there has been thousand of job losses that has already taken place since the preliminary duty tax was imposed. This is great for the American domestic farmers as they can then set a price that will enable producer profit to be achieved. As for the U.S consumer they might have to pay more for the lumber they were getting cheaper without the duty tax. As for the American government, they get the revenue from the imposed duty tax. This could hurt the trade relationships between the two countries as Canada could then retaliate by imposing some sort of tax to some of the U.S imported goods.

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