International trade continues to cause instability in the building materials sector, particularly in the softwood lumber market.
Recent changes to antidumping and countervailing duty (AD/CVD) rates, combined with the application of Section 232 tariffs, have raised the trade-related costs of Canadian imports.
As a result, the average duty rate on Canadian softwood lumber entering the United States has tripled, to roughly 45%.
These higher trade barriers provide new hurdles for home builders that rely on Canadian lumber to meet construction demand.
In 2024, Canadian softwood lumber exports to the United States were $5.1 billion, accounting for nearly 74% of total softwood lumber imports.
Canada continues to be the sector’s leading supplier and long-standing trade partner. The US Census Bureau’s trade data allows for state-level tracking of import destinations.
The majority of Canadian softwood lumber enters through the International Falls, MN port of entry, which received $840 million in imports in 2024, almost $150 million more than the next biggest port, Blaine, WA.
These statistics are down from 2021 and 2022, owing primarily to decreased U.S. lumber prices during the current era.
This analysis raises the question of where Canadian softwood lumber imports will eventually go in the United States.
Washington state was the leading import destination in 2024, getting $560.1 million.
Texas was close behind at $451.7 million, indicating robust demand in the southern home market. Alaska had the lowest import volume, with only $284,053 in softwood lumber shipments.
However, it is vital to recognize a significant restriction of the data. The “state of destination” refers to where the importer is situated or where the shipment is first received, not where the lumber is eventually used.
This means that, while trade data can reveal logistical patterns, it cannot fully represent the final location of consumption, especially when goods are dispersed across state lines.
[Read more about this topic on Eyeonhousing.org]