Read the full story in the May 3 edition of The Interior News.
Moricetown’s major employer, the village-owned Kyahwood Forest Products, will already owe $381,330 after American President Donald Trump’s administration’s duty on Canadian softwood lumber go into effect May 1.
Kyahwood said in a release it must consider closing due to these extra costs.
The mill in a release said it employs 58 people, almost all indigenous, with an annual payroll of $2 million. It also spends $5 million on operating supplies, a big spin-off for the local economy.
The amount owed is from the retroactive portion of the duties, forcing companies to pay for exports to the U.S. going back 90 days. Kyahwood shipped over $1.9 million over the border in that time. After May 1, the U.S. expects all duties to be prepaid. Kyahwood would pay an average of $11,000 per rail shipment, which would total $110,000 per month.
The Countervailing Duty is set at 19.88 per cent for all companies like Kyahwood not on a list that gave specific percentages to other companies. PIR in Smithers is owned by West Fraser, which has a duty of 24.12 per cent. The manager of PIR did not wish to comment.
Making things worse is a 10 per cent anti-dumping tariff starting in June, but also with a 90-day retroactive pay period.