David Elstone
On August 25, 2026, Canada announced counter-tariffs of 15%, 25% and 50% on targeted US products in response to the US decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods. Canada’s counter-tariffs will apply to 874 product classifications, covering a matching $27.6 billion in imports from the US, with a focus on steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The retaliation marks the start of a full-scale trade war, with Canadian tariffs taking effect on September 8. …The Canadian counter-tariffs will apply to US softwood lumber, plywood, dissolving pulp, paper and packaging products—including toilet paper—kitchen cabinets, upholstered furniture and non-upholstered furniture. AcrossCanada, I estimate these US forest product imports had a value of $3.2 billion in 2025. For US forest products entering BC, I estimate their 2025 import value was $527 million.
It makes sense that paper and packaging products are a clear focus of Canadian countermeasures. Counter-tariffs targeting $2.4 billion of US paper and packaging products will cause concern. …Canada has fired back, but in a trade war, the forest sector still gets caught in the crossfire. Counter-tariffs are retaliation, not a defensive strategy that protects domestic producers from the impacts of tariffs on their export sales. The consequences are already emerging with Rayonier Advanced Materials announcing a temporary mill closure affecting its dissolving pulp production in Temiscaming, Ontario. Also there are reports Nova Scotia’s pine sawmills are facing shutdowns. Unfortunately, this is likely only the beginning.
One of the world’s closest trading relationships is about to break down at enormous cost to both countries — and for no intelligible reason. …Canadian Prime Minister Carney suggested the US made unacceptable last-minute demands, including measures that would “compromise Canada’s sovereignty or undermine our key industries.” US Trade Representative Greer said Canada inexplicably turned its back on improvements that would’ve made a good deal for both sides even better. That claim was hardly credible. This White House has shown no interest in mutual advantage. …American voters, on the other hand, may be unwilling to bear any burden merely to show Canada who’s boss. …US businesses are puzzled too. Many American companies have supply-chains tightly linking domestic and Canadian operations. …But it isn’t too late to step back. Washington should revert to the terms in play before the talks collapsed. …If the worst happens, who are Americans heading to the polls in November going to blame?
The complete index of American products subject to Canadian retaliatory tariffs on September 8 include more than 600 different entries. Searching for patterns can drive you to madness. Butterfly nets will be hit with a 50 percent tariff. So will eye make-up preparations and fish egg incubators. …When asked about the decision-making process, industry minister Mélanie Joly said some goods are meant to hurt Trump-supporting states, though she declined to say which. …States with Republican senators, such as Maine, Ohio, Michigan, Iowa, and Texas, all have substantive trade relationships with Canada—and are considered possible battleground states. Some experts are calling the issue “a political trap for Republicans,” with Democrats already seizing on the matter as a talking point. Here’s a look at some of the red states vulnerable to Canada’s new round of tariffs and the industries that may feel the most hardship.
The more the United States undertakes comprehensive efforts to reduce its vulnerability to Chinese economic coercion, the more important it becomes for Canada and Mexico to align their own policies. Misaligned tariff rates across the three countries incentivize the transshipment of Chinese goods to U.S. consumers. …Fundamental differences among the three countries allow for specialization based on what workers and companies in each do best. …Trump’s 2025 and 2026 tariffs pursued too many contradictory objectives. Beijing’s economic coercion clarified the most important task: to quickly create new sources of supply outside China. The ongoing USMCA negotiations present a political opportunity to pursue that objective by better aligning the countries’ tariff policies along three dimensions. …Then, Canada and Mexico need to raise some of their tariffs on China. …The most immediate need is for the Trump administration to stop implementing policies and circulating rhetoric that undermine North American unity.
OTTAWA — The federal government is replacing its counter-tariffs on seafood with 50% levies on a series of other American goods, according to Finance Minister François-Philippe Champagne’s office. …The decision to remove seafood from Canada’s list of counter-tariffs was made in part to avoid giving the appearance of escalation by Canada in the face of a simmering trade conflict with the United States, as the U.S. does not tariff Canadian seafood imports. Newly added to Canada’s list of counter-tariffs include: Wood charcoal; Printed matter, including printed pictures or photographs; Articles of plaster or of compositions based on plaster, including boards, sheets and tiles; Materials used in the conveyance or packing of goods, including bottles, flasks, jars and pots; And copper wire. On Tuesday, the federal government laid out its plan for countermeasures in the ongoing trade war, and announced a $7.5-billion support package for workers and businesses.
More than 20 lumber mills closed across B.C. over the last three years. Billions in wood products affected by U.S. tariffs. Tens of thousands of jobs lost in Canada. …While there are many factors driving the decline, recent U.S. tariffs haven’t helped. But Donald Trump is hardly the first U.S. president whose government has imposed steep duties on Canadian lumber. The tariffs are the latest chapter in a dispute that’s been going on for more than four decades. …It boils down to differences in how much Canadian and American producers have to pay for access to wood, according to 
Barton: You know, it was just a week ago, incredibly, that you and your counterpart, Dominic LeBlanc, shook hands outside, seemed pretty confident that there was a deal to be had. From your perspective, what happened that caused the talks to collapse?
WASHINGTON — The US and Canada have 
First Nations are grappling with uncertainty and bracing for impact as the Canada-U.S. trade war escalates, with steep tariffs taking effect on some business sectors. … British Columbia faces the highest consequences to the new 50 per cent tariffs on certain goods, causing concern among First Nations in the province that are involved in forestry. John Jack, elected chief councillor of the Huu-ay-aht First Nations on Vancouver Island, said they are “potentially deeply impacted due to our heavy investment in the forestry industry.” Those investments include its own company, HFN Forestry Limited, a 35-per-cent partnership with Western Forest Products on nearly 137,000 hectares of forest, and Iskum Investments, a First Nations consortium looking at building a second-growth focused mill. …Dallas Smith, president of the Nanwakolas Council, which represents six First Nations on northern Vancouver Island, said the new tariffs would greatly affect its investments in forestry. 
Using the bathroom or having a cry is about to become more expensive for North Americans as the 
Prince George city council voted to send a letter to the federal jobs minister asking her to extend temporary employment insurance program for forestry workers in response to the impending closure of Northwood Pulp Mill at its Monday, Aug. 31 meeting. A report written by intergovernmental relations senior advisor Annie Doran and submitted by Coun. Garth Frizzell in his role as chair of the Standing Committee on Intergovernmental Affairs said that in the wake of the ongoing U.S.-Canada trade war, the federal government instituted several temporary measures, including: Waiving the waiting period for all new claims; Suspending the allocation of separation earnings like vacation pay, severance pay and more; and Increasing the number of weeks that long-tenured workers can received benefits to a maximum of 20. These benefits were implemented on March 30, 2025 and are expected to end on Oct. 10, 2026.
Nanaimo is bracing for the impacts the implementation of the 50% tariffs on billions of dollars in Canadian goods that came into effect on Aug. 22 will have on the local business community. Julie Sperber, the new CEO of the Greater Nanaimo Chamber of Commerce said… it’s clear that many of the region’s forest companies are going to take a big hit. …“Companies like the Harmac Pacific pulp mill won’t be affected as much because much of their products go to Asia, but Coastland Wood Industries are feeling the impacts of US tariffs for the first time.” Secondary-wood products like veneer sheets have been explicitly targeted for the first time. Doug Pauze, president of Coastland, said the company has scaled back production. …Sperber said officials from Western Forest Products and Mosaic Forest Management have planned meetings with government members in Victoria to discuss strategies to deal with the tariffs.
The Member of Parliament for Cowichan-Malahat-Langford is calling on the federal government to explore how it could potentially use the Crofton mill. MP Jeff Kibble is floating the idea of it being used by the Department of National Defense. …On Friday, crews were loading logs onto a ship at its deep sea port. It’s one of the key assets of the property that has the region’s MP calling on Ottawa to consider the property’s purchase. “What I recommended is that the government immediately conduct a feasibility study to see if this is an opportunity to expand the base at Esquimalt. We know that the opportunity to have a deep water industrial site is rare and we also know that the navy is expanding rapidly,” said Kibble. Kibble served in the Royal Canadian Navy for 28 years. …When asked about Kibble’s proposal, Domtar said it’s “exploring a variety of possibilities for the future of the site”.
Two weeks until the 23rd Annual Global Buyers Mission in Whistler! At a time when trade barriers, transportation constraints, and rising operating costs are influencing how businesses plan and source, strong supplier–buyer relationships matter more than ever. GBM brings B.C.’s value-added wood manufacturers together with pre-qualified international buyers, distributors, and specifiers. From targeted B2B meetings and conversations on the tradeshow floor to networking receptions including the Women’s Networking Event, WoodTALKS seminars, and a few memorable Whistler moments along the way, GBM is designed to create connections that last well beyond the event. See you in Whistler, September 10-12!
Osoyoos, British Columbia — September 21–22, 2026 Every industry has its acronyms. Few, however, land quite like the one the Independent Lumber Manufacturers’ Association (ILMA) has chosen for its 2026 Annual Convention: WTF — Where’s The Fibre? It’s a cheeky title for a serious question. Fibre availability — the raw material that keeps sawmills running, communities employed, and Canada’s forest sector competitive — has become one of the defining challenges facing the industry. ILMA’s answer is to lean into the tension rather than tiptoe around it, gathering the people who can actually do something about the problem for two days of conversation, deal-making, and, yes, a little golf. The ILMA Annual Convention has built a reputation as one of Canada’s premier forestry networking events, and this year’s edition returns to Spirit Ridge Resort in Osoyoos, located on the traditional territory of the Osoyoos Indian Band. The ILMA’s convention is intentionally curated — bringing together company owners and senior executives from across the sector alongside government representatives, First Nations leaders, suppliers, consultants, and forestry professionals.
Bryan Yu, chief economist for Central 1 Credit Union, had no sooner completed a grim economic prognosis of B.C.’s ailing forest economy when, as if to punctuate the point, Domtar announced it would indefinitely idle its Howe Sound pulp mill in Port Mellon on Aug. 20. He said it was an “unhappy coincidence” that the announced pulp mill closure just happened to be announced the day before Central 1 published its economic commentary, which describes B.C. forest economy reaching the “breaking point.” The mill’s closure will result in about 400 workers losing their jobs. Domtar (formerly Paper Excellence) gave no date for when the mill will shut down. But if it is before the end of this year, that will mean three major pulp mills in B.C. will have shut down in B.C. in a single year. …The Council of Forest Industries (COFI) estimates 21 mills, mostly sawmills, have shut down in B.C. since 2023. 
It’s a dynamic moment in time for Nanaimo’s Harmac Pacific pulp mill and the whole coastal forest industry, according to CEO Paul Sandler. Sadler said that the new American 50% tariffs… are not directly impacting Harmac’s operations at this time, but the tariffs’ likely repercussions on the coastal saw and lumber mills… are very worrying. Harmac requires a significant amount of wood chips to produce its high-value kraft pulp that is used globally for tissue, packaging and paper production. …But Sadler said, the biggest news for the forest industry on the B.C. coast recently was the indefinite closure of Domtar’s Howe Sound pulp and paper mill on the Sunshine Coast. …“We need more pulp capacity on the coast to meet the demand than Harmac and the pulp operation in Port Alberni can provide. …Sadler said it’s vitally important that the region’s sawmills get back to operating at full capacity.
VANCOUVER — A leader in BC’s forestry sector is voicing support for Prime Minister Carney’s decision to walk away from trade talks with the US despite reported concessions on lumber tariffs in a scuttled deal. Kim Haakstad, president of COFI, says the breakdown of talks will create challenges for her sector, but Ottawa had to walk away if negotiators couldn’t secure a deal that worked for Canadians broadly. …BC Premier David Eby said that he understood some progress had been made in addressing the long-standing softwood lumber dispute during the most recent talks and it was “disappointing” to see that fail to materialize. …Haakstad called for measures including reducing regulatory restrictions to allow quicker access to BC lumber for a more competitive product on the global market. …She said Ottawa could also help by addressing rail transport costs, a significant barrier for Canadian lumber producers looking to sell products domestically.
Local officials and an operator are remaining hopeful over the future of the two remaining pulp mills on Vancouver Island, despite recent mill closures and new U.S. tariffs. B.C.’s critical forestry industry is among those that are likely to take a major hit due to the incoming 50 per cent tariffs on certain Canadian goods — with the new duties targeting some Canadian pulp and paper products specifically. But Nanaimo Forest Products, which operates the Harmac Pacific Pulp Mill, says most of its specialty wood products have been spared by tariffs and are mostly exported to markets in Asia. “We’re highly focused on exporting our products overseas into places like Japan, Korea, China, Indonesia, even Australia,” said Harmac CEO and general manager Paul Sadler. Harmac produces northern bleached softwood kraft (NBSK) pulp, which Sadler says is common throughout British Columbia, often used for making tissues and paper towels.
Port Alberni’s 80-year old paper mill is safe according to local leaders. The economic centre of the city is now reeling from partner pulp mills closing, high fibre prices, and Trump’s tariffs, creating a cloud of concern. Courtenay – Alberni MP Gord Johns said governments have given successive ownership companies millions of dollars in funding and tax breaks, and he’s been assured by the current owners Domtar that the Port Alberni paper mill is safe from closure. “The indications that I got in my conversations with the company is that there is no threat of imminent closure in Port Alberni, so that was positive, and all indicators right now is that operations aren’t under threat,” he said. Port Alberni Mayor Sharie Minions agrees. …Domtar’s Senior Manager of Strategic Communications Brenda Martin, said they do not anticipate any disruption to the mill’s production schedule or their ability to meet customer commitments.
The wrecking ball is readying for the former Northern Pulp mill, a once major player in Nova Scotia’s forestry sector that also came to be recognized as one of the province’s most prominent examples of environmental racism. Environment Minister Tim Halman announced an amended ministerial order on Thursday, clearing the way for the decommissioning, abatement and demolition of buildings and other infrastructure at the site in Abercrombie that sits on the edge of Pictou Harbour. Officials with Northern Timber Nova Scotia, the company that owns the property, expect the work to begin as early as September. …Halman’s amended order says all solid waste, including construction and demolition debris from the mill site, must be disposed of in an approved facility and everything must be removed within 18 months. …An official for Domtar said the work is expected to be complete in the last quarter of 2027,” Brenda Martin said.
… municipal politicians [will] gather for their annual fall convention and attempt to influence the provincial government’s agenda. The Union of B.C. Municipalities convention takes place in Vancouver, Sept. 14-18. …The City of Nanaimo is calling for a ban on exporting raw logs and lumber cants. …The motion states that a lack of adequate and affordable wood fibre supply has been identified as a key factor in the continued curtailment or permanent closure of B.C. sawmills and pulp mills. Over the past five years, on average about 3.2 million cubic metres of raw logs have been exported. “Therefore be it resolved that UBCM call on the provincial government and federal governments to ban the export of raw logs and lumber cants from B.C. to ensure that forests harvested in B.C. from Crown land and private managed forest lands are processed in B.C., encouraging value-added manufacturing in B.C. and supporting employment in B.C.’s forest industry,” the motion states. [A Vancouver Sun subscription required for full access]
Canadian home resales have been on a winning streak since April, inventory has levelled off, and prices appear to be stabilizing or at least falling more slowly. We see room for further gradual progress ahead as improved affordability and brightening job prospects shore up confidence, increasingly unlocking pent-up demand and slowly draining piled up inventory. But, the path is unlikely to be smooth or uniform across the country. The prolonged market correction in Ontario and BC will take time to heal. And, more resilient regions have little upside left amid stable or rising interest rates and stagnant population growth. …We project home resales and the benchmark price index to fall -3.6% to 453,200 units and -2.3% to $794,200, respectively, this year mainly reflecting weakness this winter and early spring. Recovery will become more visible by 2027 when we forecast transactions to grow 6.7% to 483,600 units, and the benchmark value edges higher by 0.8% to $800,700.
The Bank of Canada is likely to hold borrowing costs steady, as an escalation in the trade war with the U.S. threatens the economic recovery while adding to inflation risks. Economists and markets expect policymakers led by Governor Tiff Macklem to keep the policy rate at 2.25% on Wednesday. It would be the seventh straight hold — but the mood surrounding the country’s relationship with its top trading partner has changed dramatically since the last one, in July. …“Heightened growth risks from new U.S. tariffs and inflation risks from high oil prices likely created more discomfort for the Bank of Canada since their last meeting in July, but not enough to push them off the sidelines,” Nathan Janzen and Claire Fan, economists at Royal Bank of Canada, wrote. Tariffs will add to inflation while weighing on growth, reviving a dilemma Macklem and his governing council have highlighted throughout the trade war.
As the dust settles in this tit-for-tat tariff row, what will be affected most on both sides of the border? …Construction materials such as steel, aluminium as well as lumber wood have had tariffs in place before the latest escalation, though Canada has now matched US rates on the metals at 50%. Carney has also imposed import taxes on several US wood products, such as plywood, and even screws used to fix timber together. That means building firms that import such materials will face higher costs and may choose to pass those on through higher prices – pushing up the cost of homes, for example. The Forest Products Association of Canada says tariffs would “raise costs on both sides of the border”, while on the US side, Bill Owens, chairman of the National Association of Home Builders (NAHB) urged Trump to make building materials exempt from his tariff agenda due to an “ongoing housing affordability crisis”.
New US tariffs on Canadian wood products threaten to raise construction costs for US homebuilders and squeeze supply chains already stretched thin as a potentially long and bruising trade war gets underway. …“Basically, the fact that there’s import tariffs on Canadian shipments to the US and vice versa is going to raise the cost of production for everyone, ultimately through the housebuilder to the consumer,” wood market expert Russ Taylor told Mortgage Professional America. …The full impact on homebuilders could take a few months to become clear but the direction of travel is clear, he said. “The builders either can’t find product or the prices go higher for certain products, and then that starts to influence homebuilders,” he said. “Probably not right away – everyone’s got inventory to sell – but certainly looking ahead a couple of months from now, that’s when some shortages or stockouts could start to occur.”
Canada’s nascent mass timber industry escaped a direct hit from the Trump administration… But steep US levies on the wider Canadian forestry sector still present sizable challenges for manufacturers as they chase a global market for engineered wood forecast to grow to more than US$12 billion by 2035. …Engineered-wood products such as CLT and glulam were left off the latest tariff list. Yet the emerging mass timber industry could feel the “broader hit”. “Mass timber does not become mass timber without the raw wood inputs,” said FPAC’s Derek Nighbor. …Canada Wood knows what it takes to develop a market for Canadian lumber products in China and other Asian nations. But CEO Bruce St. John cautioned that shifting exports to markets other than the US will “take years still” and require more than simply shipping Canadian lumber to overseas buyers. …Canada Wood’s Lance Tao noted, Canada’s opportunity in Asia’s engineered wood market is still less about shipping finished “modules” to the region and more about selling lumber to Chinese mass-timber manufacturers.
The end of wildfire season is beginning to fizzle as the B.C. Wildfire Service is nudging open the gates a little bit and allowing category one fires today. The combination of current and future forecasts, recent precipitation and improved overnight recoveries has reduced the need to prohibit campfires in the Southeast Fire Centre region. “The B.C. Wildfire Service takes several factors into account before rescinding prohibitions,” noted the BCWS in a statement. “This includes balancing the needs of the public with the need to mitigate the risk of human-caused wildfires.” As of noon, category one campfires will be permitted throughout the Southeast Fire Centre — which includes the Rocky Mountain Natural Resource District and the Selkirk Natural Resource District — and all non-municipal land across the Regional District of Central Kootenay. However, there are rules involved. A category one campfire must be set in accordance with section 20 of the Wildfire Regulation…
Forestry critic and B.C. Conservative MLA for Kamloops-North Thompson Ward Stamer wants to see the province salvage more wildfire-burned wood faster. He said that only about 5% of burned wood is logged on average in B.C. following a wildfire — a number he’s prefer to see rise to 25%. The former logger said he also wants to see cutting license issued faster, noting most burned trees are useless if not harvested within two years. …Stamer said once a trees dies, it begins deteriorating and each species does so at different rates. He said most burned trees that aren’t harvested within two years may only be good for low value chips, as opposed to other products such as plywood, veneer and saw logs. …Forestry Minister Ravi Parmar said the salvage rate is closer to eight to 10%. Parmar said the province is always trying to increase its salvage rate.
The province has ended its state of provincial emergency. The state of emergency was first declared Aug. 8 following a night of fast-moving fires, including the Bald Range wildfire that led to the evacuation of the District of Summerland. At the time, more than 20,000 people were evacuated from their homes. It was then extended Aug. 21 through to Aug. 29, but the province says the decision to end it early follows advice from emergency management officials. However, the province says the wildfire risk in B.C. remains high. The ending of the state of emergency has no effect on the current evacuation orders, evacuation alerts or local states of emergencies put in place by local governments or First Nations.
Prince George city council is being asked to support a call for an independent public inquiry into BC forest and wildfire management. A report, drafted by Coun. Garth Frizzell in his capacity as chair of the Standing Committee on Intergovernmental Affairs, goes before council on Monday, Aug. 31. It recommends the city submit a resolution to the Union of BC Municipalities (UBCM) asking the provincial government to establish an inquiry under the Public Inquiry Act. The UBCM holds its annual convention Sept. 14-18 in Vancouver. The proposed inquiry would examine the relationship between forest management practices and wildfire risk and severity, as well as the effectiveness of fuel management, prescribed burning, wildfire prevention and landscape-resilience strategies.
BURNABY, B.C. — The United Steelworkers union (USW) says the B.C. government’s proposed Working Forest Landscape Model is a step in the right direction, but … implementation cannot wait. “Our union and others have called for a clearly defined working forest for decades,” said Scott Lunny, USW Western Canada Director. “Government needs to move quickly to define the economic land base, increase the sustainable harvest and give workers and communities the certainty needed to rebuild our forest industry.” …USW says establishing where B.C.’s working forest will be only part of the challenge. The province must also determine how access to fibre from that land will support domestic manufacturing and employment. “These are public forests and a working forest needs to work for British Columbians,” said Lunny. “Greater certainty around the land base and fibre supply should mean greater certainty that those resources support mills, investment and good jobs here in B.C.” …“There is no time to waste”.
Large, devastating fires like those B.C. has witnessed this year frequently spark complaints and questions from the public: Why are there helicopters sitting at the local airport while smoke billows from a nearby mountain? Why are no squadrons of water bombers coming to the rescue? While officials might compare fighting a firestorm to spitting into a campfire, it does little to dispel the complaints that more could and should be done — in particular as anxious residents are evacuated and wait to hear if their homes, farm animals and pets have survived. To better understand how aircraft are used as a tool in wildfire fighting, The Tyee climbed aboard a Bell 407 deployed to one of the province’s largest wildfires. Flying above the 
Our Policy, Regulation and Research Department is requesting feedback on proposed amendments to Part 8, Personal Protective Clothing and Equipment — Standard of Fit, of the Occupational Health and Safety Regulation. The consultation phase gives stakeholders an opportunity to share feedback before the proposed amendments are taken to public hearing. View the 
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