Duties on most Canadian lumber fall to 24.75% as cabinet tariffs head to 50%
Commerce cut the combined lumber duty rate for most Canadian mills by about 10 points in October, but the tariff on imported kitchen cabinets and vanities is scheduled to double on Jan. 1.
By Katia Clara · · 3 min read
Commerce published final results of its seventh review of Canadian softwood lumber duties in October, covering shipments from 2024 [1]. The combined rate for the “all others” group, which covers most Canadian mills, came in at 24.75%, made up of 10.64% antidumping and 14.11% countervailing duty [2].
The prior review had put that combined rate at 35.16% [2]. By our math, that is a drop of about 10.4 percentage points.
Company rates moved as well. Canfor’s combined rate is now 31.11% and Resolute’s 25.55% [2]. The duty is paid by the importer of record as a cash deposit when the lumber enters the country, and the final amount is set later in a review like this one [1].
The new rates apply to lumber entering after publication
Commerce set a 14.11% countervailing rate for 215 non-selected companies and told Customs to collect cash deposits at the new rates on entries made on or after publication [1]. Canada’s government said the rates take effect once published in the Federal Register [2].
The case has also moved in court. A NAFTA Chapter 19 panel affirmed Commerce’s countervailing duty determination on Oct. 5, which Canada said effectively concludes that challenge [2].
Cabinet and vanity tariffs are set to double in January
A Dec. 31, 2025 proclamation pushed back the scheduled increases on upholstered furniture, kitchen cabinets and vanities by one year, to Jan. 1, 2027 [2][3]. The 10% tariff on softwood timber and lumber is not scheduled to change [2].
| Product | Rate now | Scheduled Jan. 1, 2027 |
|---|---|---|
| Softwood timber and lumber | 10% | 10% |
| Upholstered wood furniture | 25% | 30% |
| Kitchen cabinets and vanities | 25% | 50% |
How to use this
For homebuilders and remodelers
- Ask your cabinet supplier whether its quote assumes the 25% or the 50% tariff, and get the answer in writing. On $20,000 of imported cabinets, we calculate the tariff rises from $5,000 to $10,000 on Jan. 1 [2].
- Move cabinet and vanity orders for early 2027 closings forward where storage allows, since the higher rate is scheduled to apply from Jan. 1 [3].
- Ask your lumber dealer whether its pricing reflects the lower deposit rate. On $10,000 of lumber from an all-others mill, we calculate duty deposits fall from $3,516 to $2,475, before the separate 10% tariff [2].
For developers and lenders
- Split the materials line in each 2027 construction budget into lumber and finished wood products, because the two moved in opposite directions this fall [2].
- Keep a contingency on finish packages. The cabinet rate doubles while lumber duties for the all-others group fell [2], so a budget that applies one inflation rate to all wood could be off.
For rehab investors
This is market commentary, not investment or legal advice.
Sources
- [1]U.S. Department of Commerce, International Trade Administration, Certain Softwood Lumber Products From Canada: Final Results of Countervailing Duty Administrative Review, 2024 (FR Doc. 2026-21286), Oct 19, 2026.
- [2]Global Affairs Canada, Softwood lumber: recent developments, Oct 16, 2026.
- [3]Troutman Pepper Locke, White House Delays Planned Tariff Increases on Wood Products, Jan 12, 2026.
