In January, Canadian newsprint producers were hit with an overall tariff of 6.53 per cent.
Canada issued a statement saying the duties "will have a direct and negative impact on USA newspapers, especially those in small cities and towns, and result in job losses in the American printing sector". Resolute Forest Products Canada and White Birch Paper Canada are the only exception.
Additional duties on Canadian newsprint will hurt USA newspapers and result in US job losses, says the Canadian government.
DOC's decision follows an initiative by U.S. manufacturer of printing and writing papers North Pacific Paper Company (Norpac), who petitioned the agency in August previous year to impose antidumping and countervailing duties.
"Frankly I'm not surprised but it is a huge threat to Catalyst as a company and it's also a huge threat to the viability of this mill because when you add 22.1 percent on top of the bottom line, that's a lot for any company to even remotely consider swallowing, so the only option that Catalyst has is to add that to the cost of the paper that they sell to the us and hopefully their purchasers will accept that increase", Mayor Mike Ruttan said.
Threats to trade between Canada and the US are grave given that it accounts for 64 per cent of Canada's total merchandise trade with the world.
The Commerce Department focused its investigations of the groundwood issue on three Canadian companies, which it refers to as mandatory respondents.
With preliminary countervailing duties already in place, Catalyst and Kruger are now facing combined duties of 28.25% and 32.09%, respectively.
Catalyst CEO Ned Dwyer oversees the company's B.C. mills in Crofton, Powell River and Port Alberni. According to the lawmakers and thousands of newspapers nationwide - including eight in New Mexico - the tariffs are dramatically increasing paper prices and additional cost increases would be unsustainable for many papers, especially small, local newspapers, and force some to shut down amid other ongoing financial pressures in the newspaper industry. And Bruce Ralston, B.C.'s Jobs and Trade Minister, said he will work with Catalyst and Ottawa to help combat the "unfair tariffs". President Donald Trump has vowed to tear up the North American Free Trade Agreement (NAFTA) between Canada, the USA and Mexico. "Any duties will have a direct and negative impact on USA newspapers, especially those in small cities and towns, and result in job losses in the American printing sector", they said in a joint release.
The US announcement came as Canada's Foreign Minister, Chrystia Freeland, was in Washington to discuss bilateral trade relations.