CBP Probes Lumber Transshipment, Escalating Trade Dispute with Canada

Event summary

  • U.S. Customs and Border Protection (CBP) initiated an investigation on September 30, 2025, into Coastal Specialty Forest Products, Inc. for alleged evasion of U.S. antidumping and countervailing duty orders on Canadian lumber.
  • The investigation was triggered by a complaint from the U.S. Lumber Coalition, supported by ship manifest data indicating lumber transshipment through New Zealand.
  • Approximately $8 billion in antidumping and countervailing duties, plus Section 232 tariffs, have been paid by Canadian lumber companies to U.S. Customs since 2017.
  • CBP has imposed interim measures pending a final determination, which could result in additional duties on imports from Coastal Forest Products.

The big picture

This investigation highlights the ongoing and complex trade relationship between the U.S. and Canada regarding softwood lumber. The U.S. Lumber Coalition's complaint underscores the persistent efforts by U.S. producers to challenge Canadian subsidies and trade practices, which have already resulted in billions of dollars in duties. The use of a third country (New Zealand) to circumvent these duties suggests a deliberate strategy by some Canadian companies to maintain market share, further complicating the trade dispute.

What we're watching

Regulatory Headwinds
The outcome of CBP’s final determination will significantly impact Coastal Specialty Forest Products and potentially set a precedent for other Canadian lumber exporters attempting to circumvent trade duties.
Supply Chain Dynamics
Increased scrutiny of transshipment routes could lead to broader changes in lumber supply chains, potentially impacting pricing and availability in the U.S. market.
Escalation Risk
The U.S. Lumber Coalition’s ongoing monitoring suggests a willingness to aggressively pursue trade law enforcement, raising the possibility of further investigations and escalating tensions with Canada.