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Canada threatens trade penalties if U.S. adds softwood lumber tariffs

WATCH: Latest news on the softwood lumber dispute between the U.S. and Canada

The Canadian government is threatening multiple trade actions against the United States in retaliation for duties on softwood lumber.

One will be announced publicly in a letter today; another batch of penalties is being studied.

READ MORE: Logger woes could topple B.C.’s softwood lumber industry

The Canadian Press has learned that Prime Minister Justin Trudeau will notify B.C. Premier Christy Clark that he is seriously considering her request for a ban or a tax on thermal coal exports, and that it’s being explored by federal trade officials.

The second threat: possible duties against Oregon industries.

That’s the home state of a Democratic senator, Ron Wyden, who has been a hardliner on the lumber dispute.

The Canadian government has found several Oregon business-assistance programs it says may constitute illegal subsidies. It’s considering a process that could lead to retaliatory duties on imports from that state’s products, such as plywood, flooring, wood chips, packaging material and wine.

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READ MORE: Tariffs on Canadian softwood lumber will hurt jobs, US companies warn

Government sources insist the threat has nothing to do with U.S. President Donald Trump; they say it’s a one-off, specific action related to one dispute, and one Democratic senator in one state.

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