US Commerce Secretary Wilbur Ross said his agency will impose anti-subsidy tariffs averaging around 20.00% on softwood lumber imports from Canada. Speaking to Reuters, Ross said the proposed duties would affect $5 billion worth of lumber imports from the country.
US competitors have been arguing that Canadian timber producers, who use public lands, receive subsidies from their government, which is unavailable to US growers, most of whom use private land. The US imported a total of $325 billion in goods and services from Canada in 2015, according to Commerce Department data. USDCAD has been rallying since the announcement on greater than average volumes after breaking above the strong resistance around 1.3530. The pair was last seen trending around 1.3560, marking the highest point since December 28.