A US Commerce Department decision to impose countervailing duties on secondary products such as flooring and fencing as well as lumber has enraged Canadian manufactures who say it will add an estimated US$200m to the tax.
Canada believed only raw lumber being transported to the US would be hit by the duty which is now poised to cost the Canadian lumber industry about US$1.2bn if it receives final approval in December.
The news is also a blow for Canadian western red cedar producers who recently launched a campaign to be exempt from the duty (TTJ September 8) on the grounds its products were not the construction grade timber at the heart of the dispute.
To date, 12 coastal mills in British Columbia have been closed, four are running at reduced capacity and 9,700 forestry workers have been laid off.
