Canada Is Confident U.S. Will Lose Lumber Dispute, Freeland Says

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Trump has called the move "a disgrace" that hurts U.S. producers in dairy states like Wisconsin.

Susan Yurkovich, president of the B.C. Lumber Trade Council, said the US industry trade action is created to push up lumber prices for their benefit.

Prime Minister Justin Trudeau said he told Trump in a Tuesday phone call that the US commerce department levelled "baseless allegations" when it imposed new, unfair duties on Canadian softwood this week. "Everyone thinks of Canada as being wonderful".

On Monday, the USA imposed significant new duties of up to 24 per cent on lumber imports. The White House's daily briefing began with exchanges about the most arcane Canadian trade issues, like stumpage fees from public land and dairy regulations that have limited imports of milk proteins.

That's what he wrote the morning after his government announced initial duties up to 24 per cent on Canadian lumber, with more expected later this year.

"We are tremendously interconnected in our economy with that of the United States, but it's not just a one-way relationship", Trudeau said during a visit to Kitchener, Ont.

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Ross suggested that other industries may soon be put under the Trump administration's microscope as it moves closer to renegotiating the North American Free Trade Agreement.

"Canada has made business for our dairy farmers in Wisconsin and other border states very hard", the President wrote on Twitter. Though the White House reported that the call was amicable, on Monday Mr. Trudeau refuted baseless allegations from the United States that the lumber is being subsidized and pledged to vigorously defend Canada's softwood lumber industry.

In a media release Tuesday, Pleasant River Lumber said it is expanding its Moose River spruce mill in Jackman to add drying capacity this summer and hire up to 20 new workers for a second shift starting this fall. The new tariff may actually be a negotiation tactic, as Secretary Ross was appointed to be a critical player in the Trump administration's stated plans to overhaul NAFTA. The problem is the reverse, they're prohibiting USA dairy producers from selling their products in Canada, as a practical matter, and we're looking into whether there are measures we can do to try to correct that, he said.

He also said, "We will not stand for this".

Trump has also made rumblings of late about imposing tariffs on Canada's dairy industry.

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