v3.25.4
Export duties, net, and tariffs
 12 Months Ended
Dec. 31, 2025
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]  
Export duties, net, and tariffs On November 25, 2016, a coalition of U.S. lumber producers petitioned the U.S. Department of Commerce (“USDOC”) and the U.S. International Trade Commission (“USITC”) to investigate alleged subsidies to Canadian softwood lumber producers and levy CVD and ADD duties against Canadian softwood lumber imports. The USDOC chose and continues to choose us as a “mandatory respondent” to both the countervailing and antidumping investigations, and as a result, we have received unique company-specific rates
Accounting policies
The CVD and ADD rates apply retroactively for each period of investigation (“POI”). We record CVD as export duty expense at the cash deposit rate until an Administrative Review (“AR”) finalizes a new applicable rate for each POI. We record ADD as export duty expense by estimating the rate to be applied for each POI by using our actual results and a similar calculation methodology as the USDOC and adjust when an AR finalizes a new applicable rate for each POI. The difference between the cumulative cash deposits paid and cumulative export duty expense recognized for each POI is recorded on our balance sheet as export duty deposits receivable or payable.
The difference between the cash deposit amount and the amount that would have been due based on the final AR rate will incur interest based on the U.S. federally published interest rate. We record interest income on our duty deposits receivable, net of any interest expense on our duty deposits payable, based on this rate.
Developments in CVD and ADD rates
We began paying CVD and ADD duties in 2017 based on the determination of duties payable by the USDOC. The CVD and ADD cash deposit rates are updated upon the finalization of the USDOC’s Administrative Review (“AR”) process for each Period of Inquiry (“POI”), as summarized in the tables below.
On February 21, 2025, the USDOC initiated AR7 POI covering the 2024 calendar year. West Fraser was selected as a mandatory respondent, which will result in West Fraser continuing to be subject to a company-specific rate.
On July 29, 2025, the USDOC issued its final ADD rates and on August 12, 2025 the final CVD rates for the AR6 POI for January 1, 2023 to December 31, 2023. The final ADD rate of 9.65% and CVD rate of 16.82% resulted in the recognition of $67 million in incremental duty expense plus interest expense in earnings and an increase in export duty payable.    
On November 24, 2025, the USDOC issued a tolling notice extending the deadlines for certain ADD and CVD proceedings,
including softwood lumber, of up to 21 days in addition to the 47 day tolling notice issued on November 14, 2025 and the 119 day extension of the preliminary results issued on September 16, 2025. This extension affects the AR7 preliminary and final determination deadlines for both ADD and CVD cases. The preliminary determination decision for AR7 ADD and CVD were initially anticipated to be published October 3, 2025. The preliminary determination decision for AR7 ADD and CVD is now anticipated to be published April 8, 2026.
The respective Cash Deposit Rates, the AR POI Final Rate and the West Fraser Estimated ADD Rate for each period are as follows:
Effective dates for CVDCash Deposit
Rate		AR POI Final Rate
AR1 POI1,2
April 28, 2017 - August 24, 201724.12 %6.76 %
August 25, 2017 - December 27, 2017— %— %
December 28, 2017 - December 31, 201717.99 %6.76 %
January 1, 2018 - December 31, 201817.99 %7.57 %
AR2 POI3
January 1, 2019 - December 31, 201917.99 %5.08 %
AR3 POI4
January 1, 2020 - November 30, 202017.99 %3.62 %
December 1, 2020 - December 31, 20207.57 %3.62 %
AR4 POI5
January 1, 2021 - December 1, 20217.57 %2.19 %
December 2, 2021 - December 31, 2021
5.06 %2.19 %
AR5 POI6
January 1, 2022 – January 9, 20225.06 %6.85 %
January 10, 2022 – August 8, 20225.08 %6.85 %
August 9, 2022 - December 31, 20223.62 %6.85 %
AR6 POI7
January 1, 2023 - July 31, 20233.62 %16.82 %
August 1, 2023 - December 31, 20232.19 %16.82 %
AR7 POI8
January 1, 2024 - August 18, 20242.19 %n/a
August 19, 2024 - December 31, 20246.85 %n/a
AR8 POI9
January 1, 2025 - August 11, 20256.85 %n/a
August 12, 2025 - December 31, 202516.82 %n/a
1.On April 24, 2017, the USDOC issued its preliminary rate in the CVD investigation. The requirement that we make cash deposits for CVD was suspended on August 24, 2017, until the USDOC published the revised rate.
2.On November 24, 2020, the USDOC issued the final CVD rate for the AR1 POI.
3.On November 24, 2021, the USDOC issued the final CVD rate for the AR2 POI. On January 10, 2022, the USDOC amended the final CVD rate for the AR2 POI from 5.06% to 5.08% for ministerial errors. This table only reflects the final rate.
4.On August 4, 2022, the USDOC issued the final CVD rate for the AR3 POI.
5.On August 1, 2023, the USDOC issued the final CVD rate for the AR4 POI.
6.On August 19, 2024, the USDOC issued the final CVD rate for the AR5 POI.
7.On August 12, 2025, the USDOC issued the final CVD rate for the AR6 POI.
8.The CVD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
9.The CVD rate for the AR8 POI will be adjusted when AR8 is complete and the USDOC finalizes the rate, which is not expected until 2027.
Effective dates for ADDCash Deposit
Rate		AR POI Final RateWest Fraser
Estimated
Rate
AR1 POI1,2
June 30, 2017 - December 3, 2017
6.76 %1.40 %1.46 %
December 4, 2017 - December 31, 2017
5.57 %1.40 %1.46 %
January 1, 2018 - December 31, 20185.57 %1.40 %1.46 %
AR2 POI3
January 1, 2019 - December 31, 20195.57 %6.06 %4.65 %
AR3 POI4
January 1, 2020 - November 29, 20205.57 %4.63 %3.40 %
November 30, 2020 - December 31, 2020
1.40 %4.63 %3.40 %
AR4 POI5
January 1, 2021 - December 1, 20211.40 %7.06 %6.80 %
December 2, 2021 - December 31, 2021
6.06 %7.06 %6.80 %
AR5 POI6
January 1, 2022 - August 8, 20226.06 %
5.04%
4.52 %
August 9, 2022 - December 31, 20224.63 %
5.04%
4.52 %
AR6 POI7
January 1, 2023 - July 31, 20234.63 %
9.65%
8.84 %
August 1, 2023 - December 31, 20237.06 %
9.65%
8.84 %
AR7 POI8
January 1, 2024 - August 18, 20247.06 %
n/a
4.70 %
August 19, 2024 - December 31, 20245.04 %
n/a
4.70 %
AR8 POI9
January 1, 2025 - July 28, 20255.04 %
n/a
4.00 %
July 29, 2025 - December 31, 20259.65 %
n/a
4.00 %
1.On June 26, 2017, the USDOC issued its preliminary rate in the ADD investigation effective June 30, 2017.
2.On November 24, 2020, the USDOC issued the final ADD rate for the AR1 POI.
3.On November 24, 2021, the USDOC issued the final ADD rate for the AR2 POI.
4.On August 4, 2022, the USDOC issued the final ADD rate for the AR3 POI
5.On July 31, 2023, the USDOC issued the final ADD rate for the AR4 POI. On September 7, 2023, the USDOC amended the final ADD rate for the AR4 POI for ministerial errors. This table only reflects the final rate.
6.On August 19, 2024, the USDOC issued the final ADD rate for the AR5 POI. An amended ADD rate was issued on September 24, 2024, and was retroactively applied to August 19, 2024. This table only reflects the final rate.
7.On July 29, 2025, the USDOC issued the final ADD rate for the AR6 POI.
8.The ADD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026. In Q4-25, West Fraser updated the AR7 POI estimated rate from 2.58% to 4.70% to reflect a change in the USDOC’s methodology for ADD rate calculations that came into effect during the current year and will be applied to the AR7 final rate.
9.The ADD rate for the AR8 POI will be adjusted when AR8 is complete and the USDOC finalizes the rate, which is not expected until 2027.
Impact on balance sheet
Each POI is subject to independent administrative review by the USDOC, and the results of each POI may not be offset but the results within a POI in respect of ADD and CVD may be offset.
Export duty deposits receivable is represented by:
Export duty deposits receivable20252024
Beginning of year$408 $377 
Export duties receivable on adjustments to West Fraser rates1
32 6 
Interest income recognized on duty deposits receivable 34 25 
End of year$474 $408 
1.During the period, we recorded an adjustment to export duty deposits receivable and export duties payable to reflect our application of the technical interpretation of the relevant statutory provisions.
Export duties payable is represented by:
Export duties payable
20252024
Beginning of year46 24 
Export duties payable on adjustments to West Fraser rates1
92 15 
Interest expense recognized on export duties payable 29 $6 
End of year$166 $46 
Appeals
On May 22, 2020, the North American Free Trade Agreement (“NAFTA”) panel issued its final decision on “Injury”. The NAFTA panel rejected the Canadian parties’ arguments and upheld the USITC remand determination in its entirety.
On August 28, 2020, the World Trade Organization’s (“WTO”) dispute-resolution panel ruled unanimously that U.S. countervailing duties against Canadian softwood lumber are inconsistent with the WTO obligations of the United States. The decision confirmed that Canada does not subsidize its softwood lumber industry. On September 28, 2020, the U.S. announced that it would appeal the WTO panel’s decision.
Under U.S. trade law, the International Trade Commission (“ITC”) must review antidumping and countervailing orders every 5 years from the date of issuance. This process is referred to as a "Sunset Review". On November 30, 2023, the ITC voted to maintain the ADD and CVD orders on softwood lumber from Canada on the grounds that the revocation would likely lead to the continuation or recurrence of material injury to the U.S. domestic industry within a reasonably foreseeable time.
On August 27, 2025, the Government of Canada, in consultation with affected Canadian provinces, industry and other concerned parties, submitted a Notice of Joint Motion for Voluntary Dismissal pertaining to the CUSMA Chapter 10 challenge of the AR2 ADD order. On September 10, 2025, the AR2 ADD CUSMA panel granted the motion for voluntary dismissal.
On September 5, 2025, the Government of Canada, in consultation with affected Canadian provinces, industry and other concerned parties, submitted a Notice of Joint Motion for Voluntary Dismissal pertaining to the CUSMA Chapter 10 challenge of the AR1 ADD order. On September 17, 2025, the AR1 ADD CUSMA panel granted the motion for voluntary dismissal.
Through the withdrawal of the legal challenges, the rates for AR1 and AR2 ADD are finalized. In order for the entries to be liquidated by U.S. Customs and Border Protection, both CVD and ADD legal challenges must be concluded. AR1 and AR2 CVD legal challenges are currently ongoing.
The softwood lumber case will continue to be subject to NAFTA or the Canada-United States-Mexico Agreement (“CUSMA”), WTO dispute resolution processes, and litigation in the U.S. In the interim, duties remain subject to the USDOC AR process, which results in an annual adjustment of duty deposit rates.
Notwithstanding the deposit rates assigned under the investigations, our final liability for CVD and ADD will not be determined until each annual administrative review process is complete and related appeal processes are concluded.