Canada Softwood Lumber 2026: Current CVD Rates and the Pending Administrative Review
US CVD on Canadian softwood lumber stands at producer-specific rates averaging 14 to 27 percent in 2026. The pending administrative review covering 2024-2025 entries may significantly change individual producer rates. Here is the current rate map and the operational implications for US lumber importers.
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Open calculatorCanada Softwood Lumber 2026: Current CVD Rates and the Pending Administrative Review
The US-Canada softwood lumber dispute is one of the longest-running trade disputes in North American history, with successive rounds of AD/CVD orders since the 1980s. The current order (issued December 2017) has been under continuous administrative review. The pending review covering 2024-2025 entries is expected to publish in late 2026 and may significantly change individual producer rates.
This guide covers the current AD/CVD rate map, the administrative review cycle, the impact on US construction and lumber distribution businesses, and worked examples for typical procurement.
The current rates
Active orders:
- AD A-122-857 (antidumping) on Canadian softwood lumber.
- CVD C-122-858 (countervailing duty) on Canadian softwood lumber.
Producer-specific rates from the most recent administrative review (covering 2023 entries, published 2024-2025):
| Producer | AD rate | CVD rate | Combined |
|---|---|---|---|
| West Fraser | 5.97 percent | 11.27 percent | 17.24 percent |
| Canfor | 7.85 percent | 13.41 percent | 21.26 percent |
| Tolko | 12.13 percent | 18.97 percent | 31.10 percent |
| Resolute Forest Products | 8.94 percent | 14.62 percent | 23.56 percent |
| J.D. Irving | 4.18 percent | 9.61 percent | 13.79 percent |
| Interfor | 5.55 percent | 12.34 percent | 17.89 percent |
| All other producers (country-wide) | 7.99 percent | 14.40 percent | 22.39 percent |
Rates are producer-specific. The "all other" rate applies to any producer not individually examined in the review.
Worked example: West Fraser Canadian softwood into the US
200,000 USD of HTS 4407.10 (rough lumber, sawn) from West Fraser British Columbia.
| Charge | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN duty | 0 percent (USMCA) | 200,000 | 0 |
| Section 122 (USMCA exempt) | 0 percent | 0 | 0 |
| AD (West Fraser specific) | 5.97 percent | 200,000 | 11,940 |
| CVD (West Fraser specific) | 11.27 percent | 200,000 | 22,540 |
| MPF | capped | 200,000 | 614.35 |
| HMF | 0.125 percent | 200,000 | 250 |
| Total | 35,344.35 |
Effective rate 17.7 percent. AD plus CVD dominates the duty bill.
Worked example: Tolko Canadian softwood (higher rate)
200,000 USD of HTS 4407.10 from Tolko Manitoba (higher producer-specific rates).
| Charge | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN duty | 0 percent (USMCA) | 200,000 | 0 |
| AD (Tolko) | 12.13 percent | 200,000 | 24,260 |
| CVD (Tolko) | 18.97 percent | 200,000 | 37,940 |
| MPF | capped | 200,000 | 614.35 |
| HMF | 0.125 percent | 200,000 | 250 |
| Total | 63,064.35 |
Effective rate 31.5 percent. Producer-specific rate selection matters significantly.
The administrative review cycle
The Commerce administrative review for AD/CVD orders runs annually. For each review:
- Commerce issues a request for review ~30 days after the anniversary of the order.
- Interested parties (US petitioners, Canadian respondents) request review of specific producers.
- Commerce sends supplemental questionnaires to respondents, typically 6 to 12 months of back-and-forth.
- Preliminary determination published roughly 12-15 months after review request.
- Final determination published 3-6 months after preliminary.
- Producer rates updated retroactive to the start of the review period.
Cash deposit rates change at the preliminary and final determinations. Importers who paid cash deposit at the old rate get refunds (if new rate is lower) or face liquidation at the new rate (if higher).
The review covering 2024-2025 entries is currently in the preliminary phase. Expected publication late 2026. Producer rates could shift significantly based on the review findings.
Impact on US construction and lumber distribution
Canadian softwood is the largest single source of US construction lumber. The 17 to 32 percent AD/CVD layer is a structural cost factor for:
- US homebuilders (the lumber cost is 15 to 20 percent of typical new-home construction).
- Lumber distributors and big-box retailers (Home Depot, Lowe's, regional yards).
- Pallet and packaging manufacturers.
- Construction-grade plywood and OSB producers (related categories).
US producers (Weyerhaeuser, Boise Cascade, Plum Creek pre-Weyerhaeuser merger) supply roughly 65 percent of US consumption. Canadian imports fill the remaining ~35 percent. AD/CVD shifts marginal sourcing to:
- US southern yellow pine (lower-quality alternative).
- Chilean/Brazilian radiata pine (limited but growing).
- European spruce (specialty applications).
- Russian larch (largely embargoed since 2022).
What importers should do
1. Track the pending administrative review. Producer rates may change late 2026. Significant rate shifts can change the favored producer mix.
2. Document producer-specific origin carefully. AD/CVD rates are per-producer, not per-country. Mill certifications matter at customs entry.
3. Watch retaliatory action. Canada has periodically retaliated on US wood products. Disputes can escalate, adding complexity to bilateral wood trade.
4. Build dual-channel supply. US-domestic + Canadian sources offer hedging against AD/CVD rate volatility.
5. Consider section 232 exposure for related products. Steel banding and metal fasteners used with lumber may face Section 232 if their content qualifies as derivative.
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Section 122 status as of June 20 2026
The May 7 2026 Court of International Trade ruling in Oregon v. United States (consolidated with Burlap and Barrel v. United States) struck down the Section 122 proclamation. The Federal Circuit issued an administrative stay on May 12 2026, so CBP is still collecting the duty pending appeal. Importers paying now should preserve protest rights and refund claims in case the government loses on the merits. The underlying Section 122 authority sunsets July 24 2026 under the statutory 150-day ceiling, regardless of the appeal outcome, unless Congress extends or a fresh proclamation restarts the clock.
Citations
- Commerce AD A-122-857 (Canadian softwood lumber): https://access.trade.gov
- Commerce CVD C-122-858 (Canadian softwood lumber): https://access.trade.gov
- USTR softwood lumber dispute history: https://ustr.gov/issue-areas/agriculture/forest-products
- Canada Department of Finance retaliatory measures: https://www.fin.gc.ca
- US International Trade Commission softwood lumber injury determinations: https://www.usitc.gov
Frequently asked questions
What is the current CVD rate?
Producer-specific. Major producers (West Fraser, Canfor, Tolko, Resolute Forest Products, J.D. Irving, Interfor) carry country-wide CVD rates that ranged 11 to 27 percent for the most recently published administrative review (covering 2023 entries). The pending review of 2024-2025 entries (expected publication late 2026) may significantly change these.
Are there AD orders too?
Yes. AD A-122-857 runs in parallel with CVD C-122-858. Producer-specific AD rates averaging 5 to 12 percent. Combined AD plus CVD on Canadian softwood typically 20 to 35 percent ad valorem depending on producer.
Does USMCA help?
USMCA does not exempt from CVD or AD. The Section 232 anti-stack does not apply (softwood lumber is not in Section 232 scope). USMCA waives the MFN duty (which is small anyway, ~3 percent) but the AD/CVD layer is independent and applies regardless of USMCA preference.
What is the Section 122 treatment for Canada?
Canada is exempt from Section 122 under the USMCA framework, similar to Mexico. The post-March 2026 reciprocal tariff does not apply on Canadian-origin goods (including softwood lumber).
Does Canada apply retaliatory duties on US lumber-related products?
Yes. Canada has applied retaliatory measures on specific US wood products in past disputes. Currently active retaliation lists exclude most lumber but include specific paper and pulp categories. Check Canada's Department of Finance retaliatory measures register before importing US wood products into Canada.
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