Interfor Corporation expects to record a non-cash incremental expense of approximately US$76 million in the second half of 2026 following an increase in preliminary U.S. duties on Canadian softwood lumber.
The estimate, which includes interest, is based on a preliminary combined anti-dumping and countervailing duty rate of 25.18%. The rate applies to Interfor under the “all others” category of the seventh administrative review conducted by the U.S. Department of Commerce.
Preliminary Rate Remains Subject to Change
The Department of Commerce issued its preliminary anti-dumping and countervailing duty rates on April 9, 2026. The review covers shipments made during the year ended December 31, 2024.
On June 30, 2026, the preliminary countervailing duty rate was increased by 0.35 percentage points, bringing the combined “all others” rate to 25.18%.
The preliminary rate remains subject to change. Final determinations are expected during the second half of 2026. Interfor’s anticipated US$76 million charge therefore reflects the current estimate rather than a finalized duty assessment.
Because the expense is non-cash, it will affect reported earnings without creating an immediate cash outflow.
Earlier Duty Refunds Received
Interfor also reported receiving US$4.6 million during the second quarter following the liquidation of anti-dumping duties deposited during a gap period in the first administrative review. The company received a further US$1 million in July 2026.
Anti-dumping rates for the first and second administrative reviews, covering 2017 to 2019, have been finalized. Most deposits from those periods remain suspended from liquidation while related countervailing duty appeals continue.
Other Tariffs Do Not Apply to Interfor Products
The company also addressed two separate U.S. tariff measures announced in July.
Tariffs of 50% imposed under Section 338 of the Tariff Act of 1930 on certain Canadian goods are scheduled to take effect on August 19, 2026. Section 301 tariffs of 10% or 12.5% on imports from 60 trading partners, including Canada, took effect on July 24, 2026.
Interfor said neither measure applies to its products exported to the United States. Canadian softwood lumber shipments nevertheless remain subject to the separate anti-dumping and countervailing duty system.
U.S. Operations Reduce Exposure
Interfor’s geographic footprint provides some protection against cross-border trade measures. Approximately 65% of its lumber is produced and sold within the United States, while about 20% of its total production is shipped from Canada to the U.S. market and remains exposed to softwood lumber duties.
The company said North American lumber markets are expected to remain volatile as the industry adjusts to changing trade policies, tariffs, economic conditions and production levels.
Interfor is a North American lumber producer with annual production capacity of approximately 4.5 billion board feet. The company operates manufacturing facilities in Canada and the United States.
