US cuts the 'All Others' subsidy rate on Canadian softwood lumber to 12.80% after NAFTA panel

Canadian softwood lumber makers without their own rate may soon pay a lower deposit at the US border. The US Department of Commerce has cut their subsidy rate from 14.19% to 12.80%.

The change follows a NAFTA binational panel ruling. The panel's final action notice is dated 19 October 2026. Commerce's notice is applicable from 29 October 2026.

It amends the 2017 countervailing duty investigation. A countervailing duty offsets subsidies given to foreign producers. The new rates are Canfor 12.49%, J.D. Irving 2.96% and Resolute 13.90%. Tolko gets 11.01%, and West Fraser 16.73%.

The five named companies already have newer rates from later reviews. The notice says it "will not affect the current cash deposit rate" for them.

For all other companies, Commerce will send revised cash deposit instructions to US Customs and Border Protection (CBP). The notice does not say when.

This matters for US importers of Canadian softwood lumber and their Canadian suppliers. It matters most for producers in the "All Others" group.

The notice also says the panel's ruling is "not in harmony" with Commerce's earlier decision. It cites a US court ruling that requires entries to stay unliquidated, meaning their final duty is not settled, until a conclusive decision.

What to check

• Is your supplier in the "All Others" group or one of the five named companies?
• Has CBP issued the revised cash deposit instructions yet?
• Which of your entries are still unliquidated?