The U.S. Commerce Department said on Monday it had made a preliminary decision to exclude three Canadian Atlantic provinces from a U.S. investigation into whether Canada is dumping or subsidizing exports of softwood lumber.

Canada's softwood lumber industry is bracing for a second wave of U.S. duties expected to come Monday that could put further pressure on producers, particularly smaller ones, to cut jobs.

It could be a while before Canada and the U.S. reach a new trade agreement, as both sides dig in.