IHS Markit Content

Lumber Trade Wars on the Horizon

Spend Matters welcomes this guest post from Deni Koenhemsi, senior economist at IHS Markit.

On November 25, 2016, the U.S. Lumber Coalition submitted a petition to the U.S. Department of Commerce and the U.S. International Trade Commission, asking for relief from what it described as "Canadian subsidies and dumping."

The U.S. International Trade Commission (ITC) is scheduled to make its preliminary judgement on January 9, 2017. If the USITC rules in favor of the petitioners, indicating there is material injury to domestic producers, the Department of Commerce will continue to investigate and is likely to make its preliminary countervailing duty determination towards the end of February and antidumping determination towards the beginning of May. Therefore, the timeline points toward increasing price pressure for the spring months, as a result of possible CVD and AD measures coupled with rising construction activity.