Canada is launching challenges to the latest U.S. duties on softwood lumber, arguing the “unjustified” tariffs are harming a key Canadian sector and driving up housing costs in both countries.

Trade Minister Mary Ng will announce Friday that Canada is taking the fight to the U.S. Court of International Trade as well as a dispute-resolution mechanism under the United States-Mexico-Canada Agreement. 

“For years, the United States has imposed unfair, unjust and illegal duties on Canadian softwood lumber, hurting Canadian industry and creating rising housing costs in both our countries,” she said in a statement provided to Bloomberg on Thursday.

The U.S. Department of Commerce released the results of its fourth administrative review of Canadian softwood lumber exports earlier this sumer, landing on a new combined duty rate of 7.99 per cent, down slightly from 8.59 per cent previously.

American producers argue that the Canadian federal and provincial governments unfairly subsidize the lumber sector. The U.S. Lumber Coalition applauded the Commerce move last month.

In the statement to be released Friday, Ng said she has raised the issue with her U.S. counterpart Katherine Tai at every opportunity.

“Canada continues to remain ready and willing to discuss a negotiated outcome to the dispute that provides the stability and predictability the sector needs to ensure its continued growth and success.”