U.S. Lumber Tax Rate Declined to 34.75 Percent
Importers of Canadian softwood lumber will face a reduced total tax burden following a Department of Commerce rate review.
Updated on Oct. 15, 2026 in International Trade
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The U.S. Department of Commerce has lowered the total import tax rate on Canadian softwood lumber to 34.75 percent. This adjustment marks a decrease from the 45 percent rate previously reported in August 2025.
Why it matters
The change impacts the cost structure for businesses that rely on Canadian softwood imports for construction and manufacturing. These tax rates are determined by ongoing trade reviews and executive actions regarding national security.
The new 34.75 percent total tax rate consists of a 14.11 percent countervailing duty, a 10.64 percent anti-dumping rate, and a 10 percent national security tariff. This aggregate figure reflects a reduction from the 45 percent rate recorded in August 2025.
The players
U.S. Department of Commerce
A federal agency that promotes economic growth and enforces international trade laws, including the application of anti-dumping and countervailing duties.
The details
The Department of Commerce arrived at the new rate through a comprehensive review of import tax structures. Businesses should note that the total is a composite of different duty categories, including a 10 percent national security tariff levied by the U.S. president. Operators should track these components individually, as adjustments in any one segment can shift the total landed cost of lumber products.
Timeline
August 2025: The previous combined import tax rate of 45 percent was announced.
October 14, 2026: The new import tax rate of 34.75 percent was reported.
Market Landscape
This adjustment follows the established pattern of periodic Department of Commerce reviews that modify duties on Canadian softwood imports. It highlights how operational costs remain sensitive to the outcomes of these recurring regulatory trade investigations.
Business owners should recalculate their landed costs for Canadian softwood products to reflect the 34.75 percent tax rate. Consult with your customs broker or trade counsel to ensure your internal accounting reflects these updated duty levels.
The takeaway
The decrease in the total lumber tax rate provides a modest margin improvement for businesses importing from Canada. Operators should monitor future Department of Commerce review cycles to anticipate further volatility in trade-related costs.
Further reading
Operators can track ongoing trade enforcement actions in our International Trade section.
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Do you believe current import tariffs on building materials are driving up your household housing costs?
