10/24/18

Canadian Softwood Lumber Tariff Revisited

Canadian Softwood Lumber Tariff — what ever happened?

Big Red Car here on a drippy and rainy gray ATX day. It has been raining for almost a month.

Today, we talk about what really happened by the imposition of the Canadian Softwood Lumber 20.8% tariff back in May 2017.

Of course, the Canadians and the Americans – National Association of Home Builders – immediately began to cry foul predicting that the price of a US home would go up by $9000.

The business press said “Trump is an idiot. This will cause a huge trade war.”

Now, of course, we have some firm evidence as to what did happen. In fact, after hitting a peak of $653 per thousand board feet, the current price of lumber is $313.40/thousand board feet.

That’s right lumber has gone DOWN after the imposition of the tariff. Here is the price of a thousand board feet of lumber from the inception of the tariff until today.

Chart

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04/25/17

US v Canada — Canadian Softwood Lumber! Grudge Match

Wait a damn second, Big Red Car. Canadian softwood lumber? A grudge match? What? You got some ‘splaining to do, Big Red.

Big Red Car here on a grayish Tuesday. Still, on Earth as it is in Texas, y’all!

So President Donald J Trump has fired his first shot in the centuries old trade dispute between the US and Canada over the export of Canadian softwood lumber to the US, by imposing 90-day retroactive countervailing duties on Canadian softwood lumber exports of up to 24%. Hello, Canada!

Canadian US flags lumber

Everyone was expecting the trade wars to start with Mexico or China. Nope — Canada.

Game on, y’all. And, President Trump started it, just like he promised he would. [Promises made, promises kept.] Get some popcorn, a lemonade, and a seat.

This has been a sore spot for so long it is a sore spot within a sore spot.

First, let’s know this is a complex issue with a bunch of talking which ┬áhas gone on for so long it has bridged more than a dozen US administrations.

Let’s review the bidding, shall we?

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