Trump's first tariffs: Canada's lumber imports

April 25 (UPI) -- President Donald Trump imposed the first tariffs of his administration, up to 24.1 percent aimed at Canada's lumber industry, the Commerce Department announced.

Trump announced tariffs on Canadian softwood on Monday, prior to a Commerce Department statement indicating tariffs of between 3 percent and 24.1 percent would be imposed on five Canadian importers of lumber into the United States: West Fraser Mills, Tolko Marketing and Sales, J.D. Irving, Canfor Corporation, and Resolute FP Canada and West Fraser Mills. Smaller Canadian softwood importers will be charged an import duty of about 20 percent.

Canadian exports of softwood lumber to the United States in 2016 were valued at $5.6 billion last year, the Commerce Department reported. U.S. lumber companies have long accused Canadian firms of receiving unfair subsidies from the Canadian government. The duties were imposed to equalize competitiveness for U.S. lumber companies, and the Commerce Department statement said the tariffs were proportionate to subsidies allegedly offered by the Canadian government.

Canadian Prime Minister Justin Trudeau called the tariffs "unfair" and spoke to Trump in a phone conversation the White House said was "amicable."

Commerce Secretary Wilbur Ross defended the tariff decision during the White House's press briefing on Tuesday.

"They are a close ally, they are an important ally, generally a good neighbor," he said. "That doesn't mean they don't have to play by the rules. Things like this I don't regard as being a good neighbor, dumping lumber."

During his campaign, Trump promised to liberally use tariffs on imports, notably from Mexico and China. 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.

The United States has decried Canadian subsidies on lumber since the 1980s, and a 30 percent U.S. tariff at the time cost 30,000 jobs in Canada, the timber companies said. The matter was twice taken to the World Trade Organization, which sided with Canada both times.

U.S. lumber officials praised Trump's move.

"Today's ruling confirms that Canadian lumber mills are subsidized by their government and benefit from lumber pricing policies," Cameron Krauss of the U.S. Lumber Coalition said.

Canadian stakeholders were angered, with Resolute denying it is subsidized. The Canadian dollar fell to a four-month low against the U.S. dollar after Trump's announcement, trading at 71.80 cents.