I’ve been reading about this but didn’t really understand it until I came across this article.
The basics are that Trudeau’s government allows companys to remove trees from federal (Canadian) land at a discount so long as the timber is exported. That forces American lumber mills out of business because they can’t match Canadian prices.
[NOTE: This is the same issue with Steel and Aluminum from China]
As a consequence, in 2017 Commerce Secretary Wilbur Ross instituted a 20% tariff on Canadian lumber to protect the U.S. lumber industry. The tariff is a countervailing duty to offset the Canadian subsidy. ie. “zeroing”.
So Canada “goes bananas” and sues the US at the World Trade Organization (WTO).
Oops.
However, in a departure from prior WTO opinion; and conceding to the obvious validity of the math while faced with a U.S. president who would not relent; the WTO agreed with President Trump, Secretary Ross and Ambassador Lighthizer and affirmed the 20% tariff as a valid countervailing duty.
The softwood lumber tariff was upheld by the WTO and Canada has lost its case.
More about this @ U.S. Wins Softwood Lumber Tariff Dispute -vs- Canada at WTO…