Lumber futures fell below $555 per thousand board feet, reaching its lowest level in nine months, as retaliatory tariffs from Canada on US goods took effect, weighing down demand. Ottawa had announced counter-tariffs of 25% on US lumber and 50% on Plywood following US tariffs on several lumber-related goods. US forestry groups have long accused Canada of distorting the market, as 94% of Canadian forestland is publicly owned compared to 58% privately owned in the US, allowing Canadian lumber to be sold at a lower price. The fallout is hitting the forest sector of both countries, as selling lumber prices went up immediately after the news, pushing demand lower. Fall is usually a time for renovations, however, elevated prices weighs on the sector. Meanwhile, US housing remains subdued, with lumber-intensive single-family construction spending falling 3.2% in July, while elevated mortgage rates continue to weigh on homeownership.