Lumber prices skyrocket as Trump imposes 25% tariff on Canadian Lumber

[dmcowen674]

Trump Slaps Tariff on Canadian Lumber


4-25-2017

The Trump administration announced on Monday that it would impose new tariffs on Canadian softwood lumber imports, escalating a longstanding conflict with America’s second-largest trading partner.

At the conflict’s heart is a fundamental difference in forestry ownership. In the United States, forest lands are largely held by lumber companies. In Canada, they tend to be owned by the government, and American mills contend that Canadian provinces subsidize their industries by charging low royalty rates for cutting trees.

The United States imported $5.7 billion in softwood lumber last year alone, mainly for residential home building.

The tariffs are likely to be opposed by American homebuilders, who say they raise the cost of new houses.

Home Builders found that a 15 percent tariff would increase new home prices by 4.2 percent and cost 4,666 full-time jobs.

[dmcowen674]

Too many new homes being built anyway when there is a huge amount of empty existing houses all over the Country.

[dmcowen674]

Looks like cutting off all trade with Canada as part of pulling out of NAFTA.

I was wondering how Aldi had 49 cent a gallon milk, it was Canadian milk. Looks like that will end.

Walmart was trying to compete with Aldi and had milk at 69 cents but now jumped it back up to $1.49 after this Canada trade tarrif.

[SickBeast]

Looks like cutting off all trade with Canada as part of pulling out of NAFTA.

I was wondering how Aldi had 49 cent a gallon milk, it was Canadian milk. Looks like that will end.

Walmart was trying to compete with Aldi and had milk at 69 cents but now jumped it back up to $1.49 after this Canada trade tarrif.

What!?  A gallon of milk here costs at least $4CAD.  No exceptions.  It costs that much everywhere.  The price never changes.  It doesn't ever go on sale.  In fact, I don't think the grocery stores here make any profit on milk, eggs, or bread.  They are loss leaders of sorts, along with everything in the flyers.

Are you sure there is 49 cent a gallon milk for sale in the USA?  Canadian milk?  It sounds like Wisconsin is overproducing milk right now.  The farmers there are actually saying that Trump is wrong, and that the USA would greatly benefit from the supply chain management system that Canada has to match supply with demand so that there is never an oversupply or an under-supply.  It keeps everything stable and it keeps the farmers happy.

I find that a lot of what happens in the USA politically is driven by ideology, not necessarily what is best for the American people.  It reminds me of your healthcare system.  Here in Canada we pay less per capita for healthcare and everyone is covered.  Recently Trump tried to repeal Obamacare with new legislation that would cover less people and cost about the same.  Talk about craziness.  Like I said it's all about ideology.  It reminds me of how Rollo talks about poor people.  Is that a common theme down there?  Do people really talk like that and think that way?

[SteelCrysis]

Talk about craziness.  Like I said it's all about ideology.  It reminds me of how Rollo talks about poor people.  Is that a common theme down there?  Do people really talk like that and think that way?

Some do indeed act that way, like Rollo. I'm not certain about how many.

[SickBeast]

Talk about craziness.  Like I said it's all about ideology.  It reminds me of how Rollo talks about poor people.  Is that a common theme down there?  Do people really talk like that and think that way?

Some do indeed act that way, like Rollo. I'm not certain about how many.

Interesting. Sounds like a lot of entitlement and a lot of people who have never had to live through hard times. It almost sounds like a bit of a caste system.

[SteelCrysis]

Interesting.  Sounds like a lot of entitlement and a lot of people who have never had to live through hard times.  It almost sounds like a bit of a caste system.

I've gotten that feeling from reading Rollo's posts.

[dmcowen674]

Looks like cutting off all trade with Canada as part of pulling out of NAFTA.

I was wondering how Aldi had 49 cent a gallon milk, it was Canadian milk. Looks like that will end.

Walmart was trying to compete with Aldi and had milk at 69 cents but now jumped it back up to $1.49 after this Canada trade tarrif.

I find that a lot of what happens in the USA politically is driven by ideology, not necessarily what is best for the American people.  It reminds me of your healthcare system.  Here in Canada we pay less per capita for healthcare and everyone is covered.  Recently Trump tried to repeal Obamacare with new legislation that would cover less people and cost about the same.  Talk about craziness.  Like I said it's all about ideology.  

It reminds me of how Rollo talks about poor people.  Is that a common theme down there?  Do people really talk like that and think that way?

Yes, it has become that bad down here.

Ideology over all else.

[SickBeast]

Looks like cutting off all trade with Canada as part of pulling out of NAFTA.

I was wondering how Aldi had 49 cent a gallon milk, it was Canadian milk. Looks like that will end.

Walmart was trying to compete with Aldi and had milk at 69 cents but now jumped it back up to $1.49 after this Canada trade tarrif.

I find that a lot of what happens in the USA politically is driven by ideology, not necessarily what is best for the American people.  It reminds me of your healthcare system.  Here in Canada we pay less per capita for healthcare and everyone is covered.  Recently Trump tried to repeal Obamacare with new legislation that would cover less people and cost about the same.  Talk about craziness.  Like I said it's all about ideology.  

It reminds me of how Rollo talks about poor people.  Is that a common theme down there?  Do people really talk like that and think that way?

Yes, it has become that bad down here.

Ideology over all else.

Well Trump is taking it too far. He's carrying it over into other countries. His big beef with Canada is that we have some government involvement in both our dairy and our lumber industries. He has no business telling us how to run our country! I would love to see his response if our prime minister tried to pull that on him!

[BenSkywalker]

What!?  A gallon of milk here costs at least $4CAD.  No exceptions.  It costs that much everywhere.  The price never changes.  It doesn't ever go on sale.  In fact, I don't think the grocery stores here make any profit on milk, eggs, or bread.  They are loss leaders of sorts, along with everything in the flyers.

Lol, no, no, hell no. That is so far from a proper analysis it is comical. At $4 a gallon people are making truck loads of cash on milk- that price is rather absurd.

Are you sure there is 49 cent a gallon milk for sale in the USA?  Canadian milk?

Not that I can see anywhere. I have access to all sorts of data points on this topic, the US exports dairy- the reason for the lumber tariff is because Canada just shut down Canadians importing the significantly cheaper US alternative as it ran counter to their 'hurt the poor at all costs' dairy regulations.

I find that a lot of what happens in the USA politically is driven by ideology, not necessarily what is best for the American people.

You charge your poor people $4 for a gallon of milk. We charge quite a bit less. You are right one is clearly ideologically driven and bad for the people, but it isn't us on this one.

His big beef with Canada is that we have some government involvement in both our dairy and our lumber industries. He has no business telling us how to run our country!

You are absolutely correct, he's not telling you what to do, he's changing *our* taxation policy. Charging poor people a lot more money for a gallon of milk may be a core Canadian value- I'm not saying if it is or isn't, personally it sounds barbaric and lunatic idealism based to me, but if that is your thing so be it. Now your government using their resources to put American lumberjacks out of jobs comes with a tariff that we can use to maybe get those people back to work.

[SickBeast]

So how much does a gallon of milk in the USA really cost?  $4CAD is about $3USD.  Is it really much cheaper than that?

Really our governments should be able to sort out these two trade irritants by now.  I hear what you're saying, Ben, and actually I can see your perspective and it does make some sense.  It's always interesting to hear another side of an argument.

I will also tell you that if you want to compare food prices, I am very confident that food is much cheaper here in Canada. I was in New Orleans recently and I was blown away by how expensive groceries were. Pretty much double the price compared to here once you factor in the currency conversion. So you may enjoy $2/gallon milk, but we enjoy cheaper everything else for the most part here.