The U.S. Commerce Department has said, it has been concluded that imports of Canadian softwood is subsidized timber to the wrong.
In a statement on Thursday, released said the efforts to negotiate an agreement with Canada failed.
Canada called the decision on countervailing and anti-dumping duties on timber “unfair, unwarranted and deeply troubling”.
This is the latest salvo in a protracted dispute between the two countries.
The US, last overall rates for the majority of Canadian softwood-lumber producers, to 20.8%. A handful of producers were singled out for individual tasks, including up to 23.8 percent.
Except in one case, and the ones that combined countervailing and anti-dumping duties are under provisional duties issued earlier this year.
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The final tariffs will be set, if the U.S. International Trade Commission (ITC) makes a determination that the U.S. industry was harmed.
An ITC decision from 18. December.
In a joint statement on Thursday, Canada’s Minister of Foreign Affairs Chrystia Freeland and natural resources Minister Jim Carr said she “vigorously defend” the domestic softwood lumber industry.
“We are currently reviewing our options, including legal action, by the North American Free Trade Agreement (Nafta) and the world trade organization, and we will not delay the action,” she said.
Softwood lumber products, such as pine, fir and spruce, are mainly in the construction of single-family homes.
The United States has claimed for decades that Canada paint unfair subsidization of its lumber industry through the collection of mini fees to log public lands.
Trade Minister Wilbur Ross said in a statement that the United States continue to be “free, fair and reciprocal trade with Canada,” and that the decision was based on “a full and impartial review of the facts in an open and transparent process”.
The Department said, he had found that the Canadian exporters have sold, softwood lumber, the US at 3.2-8.89% less than the fair value. Trudeau and Trump will discuss Bombardier’s line
It also maintains that the country is providing unfair subsidies to prices of 3.34-18.19%.
The U.S. Commerce Department estimated that softwood lumber imports from Canada C$7.6 billion (US$5.6 bn;Â£4.3 bn) in 2016.
In June, in Canada C$867m (US$640;Â£500m) announced a relief for the country the wood industry.
The aid came after the US first slapped hefty duties on the import of Canadian softwood lumber in April.
The Department’s announcement comes in to negotiate during a tense point in the trilateral discussions between Canada, the United States and Mexico, the North American Free Trade Agreement.