Pending tariffs on a popular type ofCanadian lumber, announced by the United States last month, seem to have had little effect on local lumber prices – so far.
"As far as pricing is concerned, we haven’t seen any effect," said Dave Beattie, inventory manager and commodity buyer for Arnold Lumber Co. in West Kingston. "I think everybody just wants to wait and see how this shakes out."
The U.S. government in late March issued duties totaling 29 percent on Canadian softwood lumber, which is commonly used for framing in home construction. Last year the United States imported $5.7 billion worth of softwood lumber from Canada, or roughly one-third of the total U.S. supply, according to the Associated Press.
The move was a reaction to what the U.S. government says are unfair subsidies provided to Canadian mills by Canada’s government, which result in overproduction that ultimately drives down U.S. lumber prices. The U.S. Commerce Department also alleges that Canadian mills have illegally "dumped" lumber in the United States at below-market prices.
But the tariffs don’t take effect until May 8, when the U.S. International Trade Commission should finalize the duties – providing it determines that the U.S. concerns are legitimate. A few large lumber retailers in Rhode Island have said that any effects from the tariffs likely won’t surface until closer to that date.
"In talking to the mills, it’s business as usual for now," Bob Glassey, general manager of Douglas Lumber in Smithfield, said last week. "But it’s not going to be business as usual if the tariffs go through in May.
"My own personal feeling is that the Canadian mills aren’t going to absorb that 29 percent," Glassey said. "I think they’re going to pass it on to the American public."
Bobby Rayburn, vice president and treasurer of the National Association of Homebuilders, said in a written statement that the 29 percent duties could tack on an extra $1,500 to the construction cost of a typical U.S. home. The association is opposed to the tariffs.
