Kevin Mason
The US tariff regime is far from over despite a US Supreme Court ruling striking down last year’s tariffs authorized by President Trump under the International Emergency Economic Powers Act (IEEPA). Although the court noted in its ruling that the president overstepped his authority in applying reciprocal tariffs on virtually all trading partners, it did leave the door open for other means of tariff application—and the US Administration has wasted no time in charging through that door, turning to Section 122 of the Trade Act of 1974 to impose new global tariffs of 10% (likely moving to 15%). Tariffs under Section 122 expire after 150 days without congressional approval, but we assume other options will be put in place before expiry (Section 232, 301 or some other creative mechanism).
With respect to the forest products industry, cessation of IEEPA tariffs and application of these new Section 122 tariffs have no impact on existing lumber duties (35% remains intact), nor for any existing tariffs under Section 232 (at 10%) or goods currently compliant under USMCA (such goods remain tariff-free under Section 122). Although USMCA-compliant goods are safe from tariffs for now, with that trade deal being reviewed this summer the tariff-free flow of goods among the US, Mexico and Canada could be upended. Since almost all newsprint supply comes from Canada (see page 19), that fear is ostensibly already causing U.S. buyers to accelerate purchases. Our table details what we know at the moment about the new tariff regime (Section 122 at 10% but probably moving to 15%). Brazil and China appear to be winners in these latest moves, but, with other mechanisms available to Trump, we don’t think these recent tariff reductions are going to lead to any dramatic increase in imports from these countries (uncertainty seems to be part of the goal under Trump’s methods).
Conifex Timber announced that its wholly-owned subsidiary Conifex Mackenzie Forest Products has completed a $19 million secured term loan with the Business Development Bank of Canada (BDC) under the Softwood Lumber Guarantee Program. The loan has a maturity date of July 15, 2033. …The loan allows for interest-only payments until August 2028. A portion of the loan was used to repay a bridge advance from Conifex’s existing senior secured timber lender. The balance of the loan is available for working capital and general corporate purposes. Conifex also announced that it successfully restarted its sawmill in February. With the successful completion of the term loan, the Company is progressing toward normalized operations and currently anticipates sustaining two-shift operations in the second half of 2026, subject to fibre supply conditions.
The Musqueam First Nation’s agreement with Ottawa to advance the nation’s rights and title over an area that spans the western half of Greater Vancouver will force Canada to grapple with overlapping Indigenous claims, the boundaries of civic governance, and the principles of co-operative federalism. The deal acknowledges the existence of constitutionally protected Aboriginal title and creates a framework to implement Musqueam’s rights and title in their traditional territory. It is accompanied by two other agreements that create a framework for shared decision-making over fisheries, marine stewardship and land use. Just where that title will be recognized, and what rights will be affirmed, are yet to be negotiated. The Musqueam’s traditional territory has overlapping and shared territories with its First Nation neighbours. …Ottawa’s deal with Musqueam First Nation raises alarm about property rights in Vancouver area. …Cowichan decision leads to another claim on private lands in BC. [to access the full story a Globe & Mail subscription is required]
March 19, 2026 | 6:30-9 PM | UBC Robson Square Theatre — Experts from the Allard School of Law (Ljiljana Biuković), Vancouver School of Economics (Torsten Jaccard), Faculty of Forestry & Environmental Stewardship (Harry Nelson), and Political Science (Stewart Prest) will explore the evolving Canada–U.S. economic relationship and what it means for Canada’s future. As the 2026 joint review of the Canada–United States–Mexico Agreement (CUSMA) approaches, Canada faces significant shifts in its most important trading relationship. From tariffs on steel to ongoing tensions in British Columbia’s forestry sector, long-standing trade dynamics are being tested and the era of predictable trade and stable multilateral rules may be coming to an end. Policymakers, industry leaders, and people interested in understanding the structural changes shaping Canada’s economic future are encouraged to attend. Panelists will examine emerging geopolitical realities and their implications for Canada, highlighting BC forestry as a case study on how international trade pressures are affecting local industries, workers, and communities.
The head of B.C.’s Declaration Act Secretariat has left government on the eve of Premier David Eby’s move to change the landmark law to address court rulings that threaten private property rights. Jessica Wood, the province’s first Indigenous deputy minister, announced late last week she was departing the secretariat. “The Declaration Act was the first legislation in Canada to require consideration and alignment of provincial law with the United Nations Declaration on the Rights of Indigenous Peoples in consultation and cooperation with Indigenous Peoples,” Wood said in a post on 
Twenty years after spinning out Canfor Pulp Products as a separate entity, Canfor Corp. plans to bring it back into the fold to prevent the subsidiary from sinking. …Since December, its stock has plunged to about $0.50 per share. A March 6 shareholder vote on a plan of arrangement is just one of the vital signs indicating how bad 2025 was for the forestry sector in general, and BC forestry companies in particular. …But B.C. has been particularly hard hit with sawmill and pulp mill closures due to its fibre constraints and higher operating costs. The most recent high-profile mill closure in BC was the Domtar pulp mill in Crofton at the end of December. BC pulp mills rely on wood chips from sawmills to produce pulp. But so many sawmills have permanently shuttered in B.C. in the last few years that pulp mills now struggle to find enough fibre to run their mills.
EAR FALLS, Ontario — No news is not good news when it comes to the future of the sawmill in Ear Falls. Mayor of the community Kevin Kahoot says he’s supposed to talk with Interfor, the owner of the mill, this week. “We have regular conversations in the last few months…every couple of weeks,” says Kahoot. “It’s been kind of status quo recently. They keep pushing markets and tariffs and those kinds of things. But I don’t see a lot of movement maybe until springtime.” The sawmill shut down indefinitely back in October throwing 150 people out of work. [END]
New Brunswick royalty revenues have plummeted by $45 million. It’s a figure that has forestry royalties on track to come in at an historic low in the current fiscal year. And it was a decision to significantly cut royalty rates made quietly by the Holt government last July that’s behind it. That’s as the government suggests it’s a move that’s successfully sheltered the industry from curtailments and closures that are being felt across the country. …The province moved to overhaul timber royalty rates in 2022 after acknowledging its former policy of charging forestry companies a flat rate for wood cut in public forests had failed to take advantage of a two-year explosion in international lumber prices. A new system created under the former Higgs government allowed for rates to rise and fall with the prices of various wood-based commodities. “As forest product markets improve in the future, royalty rates will index upwards,” Herron said.
A large B.C.-based mass timber company is receiving $5.5 million in federal funding to expand its production capacity, the government’s latest support for prefabrication as a means to boost housing supply. Castlegar-based Kalesnikoff Mass Timber Inc. is receiving the funding from Pacific Economic Development Canada’s Regional Tariff Response Initiative. The initiative is investing more than $13 million in 10 projects across B.C.’s southern Interior, helping businesses impacted by tariffs, said a March 2 press release. Kalesnikoff is receiving a repayable investment of $5.5 million to help purchase new equipment to make prefabricated housing components used in multi-family housing, schools, daycares and commercial buildings, said the release. Kalesnikoff’s new mass timber facility in Castlegar, which went into operation last year, is ramping up production, said Andrew Stiffman, the company’s vice-president of construction services.
Visit Canada Wood’s Market News for these stories and more:
VANCOUVER — UBC’s newest building, Gateway Health, is opening as a hub for student health, interdisciplinary teaching and collaborative research. The 270,550-square-foot building gives a purpose-built home to the school of nursing, consolidates kinesiology programs from eight campus locations, and centralizes student health and wellbeing services for the first time. …
The Rainbow, Jordan and Frisby valleys in British Columbia’s rare inland temperate rainforest are home to endangered species and ancient trees. Two logging companies hold licences to log in the old-growth valleys, while the government agency BC Timber Sales has operating areas there. A 2019 proposal to permanently protect 10,500 hectares in the three valleys as a provincial park has gained renewed interest as Revelstoke city council announced in February that it supports increased conservation of the critically endangered inland temperate rainforest.
Prince George is once again surpassing expectations with the sale of two commercial thinning areas in the region, says BC’s forests minister. The sales were made to Freya Logging, a contractor based in Prince George. The total volume between the two sales is 14,005 cubic metres in the West Lake and Greg Creek area. Freya Logging will undertake commercial thinning, a forest management process that removes a portion of trees in a 35-year-old or older stand to create space and provide more light and nutrients for younger trees in the area, while older trees are cut down and sold. The process is also known to decrease the risk of forest fires by reducing fuel loads and increasing forest resilience against pests. BC Forest Minister Ravi Parmar has been a strong advocate for commercial thinning in the province and considers these two sales a milestone for forestry in BC.
The Alberta government has released a new wildfire mitigation strategy aimed at reducing wildfire risk and protecting communities, forests and critical infrastructure across the province. The Alberta Wildfire Mitigation Strategy outlines measures to improve preparedness and strengthen prevention efforts as wildfire seasons become more frequent and severe. Forestry and Parks Minister Todd Loewen said the strategy is intended to help communities better prepare for wildfire and reduce potential damage. …The strategy outlines six focus areas: improving knowledge of wildfire risks, strengthening community and Indigenous partnerships, reviewing legislation and policy, expanding the use of technology and innovation, integrating wildfire mitigation into landscape planning and prioritizing hazardous fuels management.
Members of the public are invited to an open house to learn about the development of a Xwulqw’selu (Koksilah) Watershed and Water Sustainability Plan, and provide input to help guide long-term approaches to water supply and ecosystem health in the area. The open house will take place on Wednesday, March 11, 2026, from 3-6 p.m. at The Hub at Cowichan Station, 2375 Koksilah Road in the Cowichan Valley. The B.C. government and Cowichan Tribes are leading the development of the plan, building on several years of engagement with community members, farmers and industry through local advisory tables, such as the Cowichan Tribes Guidance Group and the Community Collaborative Advisory Table.
North Cowichan wants the province to expedite increases to water licences for the Cowichan and Chemainus aquifers. Council authorized Mayor Rob Douglas to write a letter to Randene Neill, B.C.’s Minister of Water, Land, and Resource Stewardship, asking the government to accelerate the licence process at its meeting on Feb. 18. The request came after a presentation by North Cowichan’s engineering director Clay Reitsma on key infrastructure constraints in the municipality. Reitsma said that increased growth and development demands, provincial housing targets, and the recent closure of the Crofton pulp mill have combined to create significant constraints and impacts on North Cowichan’s limited water and sewer servicing, and water-licensing limits. He pointed out that most of Crofton’s water currently comes from the now closed Domtar mill… Domtar has committed to keep the water flowing from the mill’s water systems to Crofton until the end of 2026, but no promises have been made beyond that.
Canada’s drinking water can remain at risk long after wildfires burn out, according to a 
PRINCE GEORGE – Recent shifts in the global wood pellet industry have started a debate in BC about forestry, climate impacts, and local jobs. Drax, a UK-based energy company, plans to stop using wood pellets from BC at its power plant in England. Environmental groups believe this move will not affect BC much, but the province’s Forest Minister disagrees. Ravi Parmar, BC’s forests minister, says critics are spreading fear and insists the industry uses byproducts from forestry, not old-growth trees. Michelle Connolly from Conservation North says that although Drax stopping shipments to the UK seems important, the situation in BC is actually much more complex. …Forest Minister Ravi Parmar says BC uses some of the world’s strongest sustainable harvesting practices. He adds that pellet plants use leftover byproducts from logging, not valuable logs from primary forests. 
The City of Ottawa says program cuts at Algonquin College could make it harder to recruit workers. An internal city analysis reviewed roughly 30 programs the college was thinking of suspending and ultimately did cancel after a unanimous board of governors vote on Monday. The city found that the elimination of nine programs would affect its ability to hire staff in the future. The programs flagged include: Nursery Operator – Forestry Services, Public Works and Nursery Worker – Forestry Services, Public Works. …The forestry services branch within the city’s public works department relies on graduates from Algonquin’s horticultural industries program to fill nursery operator and nursery worker roles. It also depends on design foundations program graduates for its traffic services branch, which hires sign designers, fabricators and supervisors.
Welcome to the Wood Pellet Association of Canada’s Spring 2026 newsletter. We hope you enjoy reading it, and we welcome your feedback.
Transport truck drivers have the most injury claims for work-related crashes of any occupation in BC over the last 10 years. And driver fatigue is a contributing factor in many crashes. Developing a strategy for reducing driver fatigue is smart business. It can help save lives and reduce the risk of injuries. It can also help you meet your legal responsibilities. Use Road Safety at Work’s no-cost resources to create or enhance your fatigue management strategy. Transport truck drivers account for nearly one-quarter of all injury claims from work-related vehicle crashes in our province, according to WorkSafeBC. …A successful fatigue management strategy depends on an effective safety culture and employee engagement. Encourage drivers to report fatigue and to pull over for a short rest when they feel it. Discuss it at safety meetings. Make fatigue part of your fit for duty assessments. Emphasize the importance of adequate sleep.