New tariff means higher drywall prices in Western Canada
Canadian border authorities imposed the import tariff on Sept. 6, in response to complaints about "dumping" of American product
September 9, 2016 by Steve Payne
Contractors in Western Canada are now being hit with higher prices for drywall, following the imposition of a new tariff this week.
The Canadian Border Services Agency (CBSA) and the Canadian International Trade Tribunal imposed the new tariff on drywall imports into Western Provinces from the United States, Sept. 6.
No one yet knows how high drywall prices will go. However one credible source, Hardlines.ca, the leading news service for Canada’s building supply dealers, predicts drywall prices in Western Canada will rise 60 per cent. See their story here.
Price hikes will definitely be substantial. The new tariff ranges from 105 to 276.5 per cent, depending on the drywall supplier.
The origin of the tariff was a complaint from CertainTeed, which is based in Pennsylvania but which also has important drywall plants in Canada, that competitors were “dumping” cheap drywall product into this country.
CertainTeed alleged that these competitors were flooding Western Canada with US-manufactured drywall at substantially less than Canadian market prices.
“Our actions are meant to stop this practice and bring a level playing field to the Western Canadian marketplace by having all manufacturers conform to regulatory and legal requirements as prescribed under Canadian law,” Matthew Walker, general manager of CertainTeed Gypsum Canada, said in e-mailed statements to media.
Contractors, we welcome your comments – and especially what pricing changes you are being hit with – following this new tariff.