In the US, the problems started because of long-standing trade war with Canada


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American builders faced the problem of increasing costs due to long-standing trade war between the United States and Canada on the supply of softwood. About it reports Bloomberg with reference to the National Association of home builders of the United States (National Association of Home Builders).

Because of the coronavirus pandemic and quarantine in the United States the production of lumber has declined. American builders have to buy timber in Canada, that is more expensive because of its lumber in the United States are 20 percent import duty. This leads to an increase in timber prices in the US by about eight percent, and increases the cost of construction.

The expert added that most construction firms in America are small businesses. To cover the additional costs given the current crisis, they are particularly difficult.

Trade conflict between the United States and Canada regarding the wood originated in 1982. In 2017, Washington imposed protective duties for canadian lumber, claiming unfair competition due to subsidies of the industry in Canada. In the US the owners of coniferous wood, private enterprise, therefore, the cost of deforestation here is determined by market mechanisms. In Canada wood is mostly at the disposal of the authorities, who establish the cost cutting in administrative procedure. According to Washington, this system gives canadian producers an unfair advantage.

Video, photo All from Russia.


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