Raimondo Says Proposed Softwood Lumber AD/CVD Hike Poorly Timed
Commerce Secretary Gina Raimondo told senators that the preliminary finding that antidumping and countervailing duties ought to roughly double on imported Canadian software lumber "couldn’t have come at a worse time," since she has been hearing from stakeholders consistently that the surge in the price of lumber is hurting builders and consumers. Raimondo, who was testifying at a May 26 hearing before a Senate Appropriations subcommittee that covers her agency, was first asked about the issue by ranking member Sen. Jerry Moran, R-Kan.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Moran asked if Raimondo would convene a meeting with home builders, saw mill operators and consumer groups "so we could have a discussion on what policy steps could be taken to reduce the prices of lumber." Raimondo said she would, and said that she and the Commerce Department's chief economist have already been talking about the problem with stakeholders. She said she talked to the home builders over the weekend. "The White House and administration is very focused on it," she said.
Sen. Susan Collins, R-Maine, also asked about the issue, and noted she just heard from Maine home builders that morning who were telling her about the doubling of the price of lumber. Collins said the previous arrangement with Canada, which expired in 2015, prevented AD/CVD cases against Canadian producers, as they agreed to export quotas in times of slack demand and were given wider access to the market once prices rose above a certain level. "It expired in 2015 and a new agreement is really needed to provide stability and predictability for industry on both sides of the border," Collins said.
Raimondo replied, "I’ve already started to talk with Ambassador [Katherine] Tai about how do we seize this moment, to come to a more lasting solution to a problem that’s existed for 40 years."
Chairwoman Sen. Jeanne Shaheen, D-N.H., told Raimondo that the Section 232 tariffs are harming many New Hampshire businesses, suggesting that she'd like them lifted. But Raimondo heard at length from Sen. Mike Braun, R-Ind., who said they're critical to protect Indiana steel mills. Raimondo responded that domestic steel production since the tariffs were imposed in 2018 is significantly higher. "We have to find a way to protect our steelworkers and our steel industry but also keep in mind our allies in the [European Union] aren’t pleased with us on slapping them with national security tariffs." She told Braun she does not expect China to stop dumping steel abroad.
Braun also asked her if she thought the agency was adequately funded, given the spike in antidumping investigations. She said that while the case volumes have doubled over the last five years, she does feel they have the funding they need. She also noted that Congress provided $2 million for anti-circumvention investigations.
Shaheen asked Raimondo how Commerce would prepare for a flood of money it would be responsible for distributing if the Endless Frontiers Act becomes law. She said they're already planning for it. Sen. Jack Reed, D-R.I., asked if it would be appropriate for the U.S. government to get stock warrants in the semiconductor firms it will send funding to. Similar warrants provided by large banks as part of the Great Recession's Troubled Asset Relief Program, or TARP bailout, ended up being profitable to the U.S. government. Raimondo said the idea makes sense but that the semiconductor companies may not be open to the arrangement.