08:25 AM EDT, 08/15/2024 (MT Newswires) -- The United States announced this week that it would raise its duty

on softwood lumber imports from Canada to 14.54%, higher than the previously announced increase to 13.86% and almost double the current rate of 8.05%, noted Bank of Montreal (BMO).

Softwood lumber has long been a sticking point in trade negotiations between Canada and the US, with the latter accusing Canada of unfairly subsidizing the industry, said the bank.

Canada exports roughly C$1.3 billion of "wood and articles of wood" (which includes softwood lumber) to the US a month, amounting to less than 3% of its total exports to that country, pointed out BMO.

With the US election nearing amid mounting fiscal and

growth concerns, expect this and other trade irritants to face further scrutiny in the coming months, according to the bank.