Metchosin accurately said the issue was the low canadian dollar, which makes Canadian lumber more competitive in the US. (and of course there is so much more of it, and as Ebbie pointed out US lumber mostly comes from tree farms - not forests)
From an ecological view I have concerns about clearcutting and the crap that goes on with the lumber industry - such as the fact that in the 50's it was pretty much given away by corrupt govt. ministers. And the tree-planting thats done in one area (and allowed to die) so as to satisfy requirements and be able to log some other area.

But all of that is beside the point anyway, the NAFTA trade agreement
has a dispute resolution mechanism, and the US is simply not abiding by it. The last 5 NAFTA panels have ruled against the US and that process has been exhausted. WTO has said that Canada will be allowed to have retaliatory duties.   OF course (As Trudeau said) its like sleeping with an elephant, any retaliatory duties can endup hurting Canada more.

As far as subsidies go, you might want to look at the US itself..
prior to the 2004 elections the EU were going to slap a duty on US steel because of huge US subsidies, and they targeted key US Swing states for more effect. It worked, the US cut their subsidies and the issue never got much coverage in the States.


Of course the agricultural sector receives huge subsidies but (as Metchosin said) the most heavily subsidized sector in the US is the military industry and there is not one peep from the antigovernment republicans.

While youre at it you might want to look at the history of how the Auto industry encouraged govts. to build highways - while the big automakers went around buing up privately owned tram lines (and the tearing them up). Then they had the benefit of a free road and highway system without having to build anything - unlike the tram companies.
GM and others were found guilty in a trial in the early 50's and like a joke were given a dollar fine each.

Im probably going off topic, but one can take a look at the large companies such as agri-business going from state to state and bargaining for the lowest tax breaks, while state legislatures jump over each other to get them in their state. After a while they move on and go to where theres even a better deal. You can look at this as a form of subsidization.