WASHINGTON - The U.S. International Trade Commission gave final approval Thursday to the imposition of stiff tariffs on imports of Canadian softwood lumber, ruling that the shipments are harming domestic producers. <br>
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The decision, on a 4-0 vote, means shipments of Canadian softwood lumber, used extensively in new home construction, will be hit with penalty tariffs averaging 27 percent. <br>
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However, in a partial victory for the Canadian lumber industry, the commission ruled that the tariffs will not go into effect until later this month. That will mean Canadian producers will receive a rebate of around $1 billion in bonds they had posted for shipments that had come into the country starting last August. <br>
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The Canadian companies had been paying an average duty of 32 percent since last year based on an initial determination by the Commerce Department of the amount of subsidies and dumping that were occurring. However, the ITC ruled Thursday that the preliminary fine was not justified. The U.S. government will have to return the punitive tariffs collected through April. <br>
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Canadian softwood lumber accounts for about one-third of the U.S. market. <br>
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The ITC vote clears the way for the average tariffs of 27 percent to go into effect once the Commerce Department issues the paperwork needed - probably later this month.
