Softwood lumber producers in New Brunswick are calling on the government to fight for their industry as thousands of jobs are left in jeopardy.

Forestry and lumber have been a major force of the province’s economy for decades, but after 35-years of having an exemption on U.S. tariffs, they’re being forced to pay nearly 21 per cent on duties.

“I don't know very many businesses that can carry 20 per cent to the bottom line… we’ll struggle,” says Brian Trenholme of Devon Lumber in Fredericton. “This is not good news for New Brunswick sawmills.”

Trenholme says duties will affect his company negatively as they ship about 75 per cent of their products to the United States.

J.D. Irving’s duties were marginally increased to nearly 10 per cent after the company agreed to a review by the U.S. commerce department.

Vice president of the sawmill division with J.D. Irving, Jerome Pelletier says the review is part of a litigation process.

“We applied to be a voluntary respondent, which means the United States of commerce came here with analysts and they look at all of our numbers and financials and that’s how they calculated our own rate,” he says.

The company says it has to reduce its revenue by 10 per cent and it will have a negative impact on business and the economy.

“Margins in general in the forest product sector are very tight and our profitability depends heavily on the lumber prices, but also on the currency,” Pelletier adds.

Premier Brian Gallant is calling the move by the U.S. government unfair and says he’s prepared to fight it.

"We need to show force to ensure that we are not going to be pushed around here in Canada and certainly not here in New Brunswick,” Gallant says.

Certified lumber products produced in Newfoundland, Nova Scotia and Prince Edward Island are exempt from any tariffs while the United States government alleges New Brunswick’s softwood lumber industry is subsidized.

Trennholme strongly denies this claim.

"We're not subsidized here in New Brunswick,” he says. “We pay the highest stumpage rates in the country.”

With files from CTV Atlantic’s Mary Cranston.