 The upper Midwest timber industry is welcoming the Trump administration's announcement that it's imposing tariffs averaging 20 percent on softwood lumber entering the United States from Canada. The industry has been struggling in Minnesota and Wisconsin. The housing market crashed in 2008, cut demand for softwood lumber used to build homes, including the products affected by the administration's move. So industry groups in both states see Monday's announcement as good news for communities with sawmills and for loggers who supply them. But Canadian officials say trade relations could suffer between Canada and the U.S. People don't realize Canada has been very rough in the United States. Everyone thinks of Canada as being wonderful and so do I. I love Canada, but they've outsmarted our politicians for many years. The Trump administration and U.S. industry groups say Canada unfairly subsidizes its softwood lumber industry, putting U.S. companies at a competitive disadvantage. What's provoked the disputes is the following. In Canada, the forests are owned by the individual provinces and each of the provinces sets a charge for the loggers to use when they're taking trees down. In the U.S., it's all open market. It's all market-based prices. So the provinces subsidize the cutting down of lumber, this technical term being stumpage, and then that lets them charge a subsidized low price when the product hits the U.S. border. Canada denies that its practices are unfair and greeted the announcement today with dismay. I will always stand up for Canadian interests and that's something that we're going to continue to do. These unfair and punitive duties will negatively affect people's jobs on both sides of the border. We are going to fight for you and we are not going to give up this fight until it is won. If this drags on for years to come, there's no doubt that that could continue to have a very negative impact on communities, workers and the businesses in the industry. Wayne Brandt, the executive director of the Duluth-based Minnesota Timber Producers Association, says the old U.S.-Canadian software lumber agreement worked well until it expired in 2015, resulting in no limits on the amount of lumber that could be imported from Canada. Officials say that, combined with exchange rate differences, made it challenging for U.S. producers to compete. It's not a question of President Trump messing with the Canadians. We believe the Canadians violated legitimate practice and to the degree we're correcting that, it should be corrected, just like steel dumping from China or any other trade infraction. Officials say Canada is not likely to challenge the new tariff illegally under the North American Free Trade Agreement or with the World Trade Organization until next year. And U.S. Senator Al Franken called the new trade penalties slapped on Canadian software lumber imports a major victory for Minnesota workers and their families. Franken says he's been pressing the federal government for almost a year to take this action, which he calls an important first step to help improve the demand for Minnesota-sourced Timber. If you've enjoyed this segment of Lakeland News, please consider making a tax-deductible contribution to Lakeland Public Television.