ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Commerce Department made a preliminary determination to lower softwood lumber import tariffs from Canada from the current rate of 17.9 percent to 11.64 percent. The rate is set to take effect by August of 2022. In November of 2021, the tariff rate was doubled to 17.9 percent.

Detailed explanation-2: -U.S. tariffs on Canadian steel and aluminum On August 6, 2020, the U.S. announced the imposition of tariffs of 10 per cent on imports of certain aluminum products from Canada, which took effect on August 16, 2020.

Detailed explanation-3: -The dispute was set in motion when the US lumber industry objected to the low Canadian stumpage rates and transportation costs, perceived by the US as an unfair advantage. US producers contended that Canada was subsidizing its lumber industry by allocating timber in a non-competitive manner.

Detailed explanation-4: -On December 7, 2017, tThe U.S. International Trade Commission (ITC) ruled that softwood lumber imports from Canada have materially injured the U.S. domestic industry. As a result, the U.S. Department of Commerce will issue countervailing duty and antidumping orders, and instruct the U.S. Customs to collect the duties.