Prime Minister Justin Trudeau said yesterday he was considering banning US coal exports in response to the "unfair" tax on Canadian lumber.
It was also learnt that the government is also looking at duties against several Oregon industries.
Oregon has been one of the loudest supporters of an up to 24% tax on Canadian softwood lumber.
Trudeau wrote to British Columbia, BC, premier Christy Clark to say that he was "carefully and seriously" considering trade action on coal exports. He said trade officials will explore next steps.
Clark had previously asked Ottawa to ban US thermal coal exports, and has said she will impose a tax on thermal coal entering BC ports regardless of the federal government's decision, because "it is the right thing to do".
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