"Having said that, I want to assure you, and I want to assure Canadians that I am absolutely firm and absolutely tough and strong".
But in a report issued on Wednesday, the Fitch Ratings agency said the tariffs should not result in material pressure for USA homebuilders, given that the increased cost per house would be around $850.
Canada's dairy sector is protected by tariffs on imports and controls on domestic production as a way to support prices for the country's farmers.
United States President Donald Trump told the leaders of Canada and Mexico on Wednesday that he will not terminate the NAFTA treaty at this stage, but will move quickly to begin renegotiating it with them, a White House statement said.
Canadian Prime Minister Justin Trudeau shot back quickly, telling Bloomberg, "The US has a $400 million dairy surplus with Canada so it's not Canada that's the challenge here".
"It was a very amicable call", a White House spokesperson wrote. USA lumber companies have long accused Canadian firms of receiving unfair subsidies from the Canadian government.
"The Association of Home Builders obviously promotes keeping government regulation and the tariffs and the trade deals to a minimum, so it doesn't effect the overall cost of the new homes and the remodeling projects", Sillars said.
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In Washington, the US Commerce Secretary Wilbur Ross while praising Canada as its "closest ally and all weather friend" did not fall short of accusing it for engaging in unfair trade practices.
"The allegations made by the United States lumber lobby are the same arguments they made in prior rounds of litigation, all of which were rejected and overturned by independent NAFTA panels", she said, denouncing a "protectionist" attempt to "create artificial supply constraints on lumber and drive prices up".
Until now, it was thought that Canada, due to its historical good relations with the United States would be able to get an exemption from the Trump administration's determined aim to balance the United States' trade deficits with the world.
She also argued that since much of the Canadian lumber goes towards building homes in the USA, the tariffs would cause home prices to go up $3,000 to $4,000.
What local builders say: Rick Koze, president and owner of Kay Builders, says the new tariffs could drive home prices up another 10 to 15 percent. For softwood lumber, the countries have had a once-a-decade cycle of tariffs, trade litigation and ultimately settlements.
Earlier in the day, Trump accused Canada of making business for American dairy farmers in Wisconsin and other border states very hard. The Canadian officials called the subsidy allegations "baseless and unfounded".