Region Archives: Canada West

Robert Tsumura

Kermode Forest Products has been shipping custom-cut wood products to Asia for three decades. With 25 per cent U.S. tariffs still a possibility despite a 30-day reprieve… Asian markets provide … a little peace of mind. …B.C. Premier David Eby says diversification is one of the strategies the province will use to combat the threat to the local economy. But that is not necessarily an easy undertaking, says Robert Tsumura, one of the company’s two partners. …but globalization and increased international trade has meant more competition. About half of Japan’s wood now comes from Europe, he said. …Nicolas Schmitt, an economics professor at Simon Fraser University noted that when trading with a country such as Japan, there can also be cultural, language and contractual barriers of the kind you wouldn’t see with the U.S. The province can help by having trade missions and offices in those countries to help match buyers and sellers, he said.

If US President Trump carries out his threat to introduce tariffs next month, expect even more forest companies to leave the province, forestry experts say. …“Tariffs aren’t new, but in terms of the impact on our members, it’s terrible,” said Jeff Bromley, Wood Council chair for the United Steelworkers union. Bromley said the tariffs make it harder for forestry companies to make a profit on exports to the United States and thus harder for members to continue to earn a living in their communities. …Statistics Canada data shows that since the turn of the century, Canada has lost about 30,000 forestry sector jobs — about a third of which were in B.C. Christopher Gaston, an associate professor at the University of British Columbia… said “I can’t imagine any BC company will be able to ship lumber for any kind of a profit; it would be at a loss,” he said. “The big mills will close down.”

MANITOBA — While he says a delay in possible U.S. tariffs is good news, a Manitoba lumber business owner says he’s been fielding questions about their impact from his locations — and he doesn’t expect that to stop. “Do we need to take this window now that we have with this pause and try to bulk up inventory as much as possible?” LumberZone owner Joel Hartung said Wednesday. …He’s also recently had inquiries from customers asking him to order materials now and keep them in stock for a few months before purchasing. “Lots of people are wanting to … lock in pricing for the project later, but they don’t necessarily want to pay for it or are unable to take delivery [immediately],” he said. “It puts a lot of stress on our cash flow and just our inventory management.”

BURNABY, BC — The United Steelworkers union welcomes Premier David Eby and the Government of BC’s decision to expedite major projects, representing an investment of approximately $20 billion, and for establishing a council to advocate for forest workers in the face of existing and pending duties and tariffs. The strategic move to advance critical mineral and energy products not only boosts the province’s economic resilience, but also ensures job security for USW members. …By accelerating these projects, the province is taking proactive steps to mitigate external economic pressures and reinforce that B.C. is a key leader in the sector. The advisory council to deal with potential impacts of increased duties and possible additive tariffs on lumber exports to the U.S. is equally important. The USW is pleased to be included in the council, which is working to get rid of the softwood duties.

Kim Haakstad

The fires that ripped through Los Angeles last month destroyed at least 16,000 structures and many of those homes and office buildings will require wood or wood products to rebuild. …The United States market that for decades has been the bread-and-butter business driver of the West Fraser/Canfor lumber giants of the province will become a lot less certain if President Donald Trump follows through on his threat to impose a 25 per cent tariff on exports of most things, including lumber, from Canada to the U.S. …Kim Haakstad, chief executive officer of BC Council of Forest Industries said Prince George, with its pulpmills and sawmills and thousands of workers connected to the forest industry would be one of the hardest hit communities in the province if the tariff is applied after the 30-day pause Trump announced on Monday. …Haakstad said Trump’s threat has far-reaching implications that would be crippling, not just those in the forest industry.

Additional coverage by Ted Clarke at the Prince George Citizen: Brink Forest Products in Prince George could be hard hit by Trump’s tariffs

CALGARY, AB – Canadian Pacific Kansas City (CPKC) today said it has reached a tentative four-year collective agreement with United Steelworkers (USW) representing clerical and intermodal employees in Canada. “We are very pleased to have reached another collective agreement at the bargaining table, our third tentative agreement this year in Canada,” said Keith Creel, CPKC President and Chief Executive Officer. “Working together with the United Steelworkers, we’ve come to a tentative agreement that is good for our railroaders and their families. With this and other recent agreements, we can continue our work safely and efficiently serving our customers, enabling growth and prosperity in the Canadian economy.” USW represents approximately 600 employees in Canada. Details of the tentative collective agreement will not be released publicly until the agreement has been ratified.