Canadian leader responds to lumber tariffs imposed by the US

He said there is roughly $15 billion worth of softwood lumber used in houses in the USA and about 31.5% of that comes from the Canadians."So that's roughly $5 billion a year". I think there is a deal to be had which is good for Canada, good for U.S. consumers. "I love Canada. But they've outsmarted our politicians for many years". A White House official confirmed the comment.

Trump has called the move "a disgrace" that hurts US producers in dairy states such as Wisconsin.

The announcement Monday is likely to lead to lawsuits and a standoff between the United States and Canada, which could lead to a broader trade war, CNN reported Tuesday. "That's stopping and its stopping fast".

The softwood lumber dispute between Washington and Ottawa has also seen many twists and turns for almost 35 years, with United States producers accusing their Canadian counterparts of exporting lumber at subsidized prices, harming American businesses.

Secretary of Commerce Wilbur Ross told reporters Canada wasn't being a "good neighbor", accusing the country of "dumping lumber" on the USA market.

"They are a close ally, they are an important ally, generally a good neighbor".

But the President could also take action to simply renegotiate the order without making a bold move declaring the US' intent to withdraw.

Trump said in the statement: "It is my privilege to bring NAFTA up to date through renegotiation".

Ross said the ongoing disputes highlight the need to get those negotiations quickly.

Prime Minister Justin Trudeau says the Canada-U.S. relationship is bigger than any one trade irritant - and that both countries would suffer from a "thickening" border.

The prime minister is said to have "refuted the baseless allegations by the U.S. Department of Commerce and the decision to impose unfair duties", during his conversation with Trump, according to the statement.

The Canadian government called the new duties "unfair and punitive", and said the industry would challenge the ruling through legal avenues.

USA lumber representatives disputed that the duties would have a material impact on home prices.

"It's good to treat people with respect", Minister of Foreign Affairs Chrystia Freeland said in a conference call from Berlin, where she was attending G20 meetings.

Ross, however, also assured reporters that this decision would not affect the home prices in the United States, adding that there are a lot of other more important factors in the discussion.