Kevin Mason
As investors struggle to understand the implications of trade wars and the current tariff regime in the US, we offer our thoughts on the likely impacts (broken down by commodity). We note that trade parameters continue to change dramatically (e.g., tariffs blocked by the courts but then overturned on appeal). To be clear, tariffs are taxes on imports, with the degree of cost-sharing between importer and exporter determined by supply and demand. Some commodities experienced pre-tariff demand pull-forward, but, across the board, tariffs have reduced buyer appetite for any inventory accumulation and have had a generally chilling effect on investment, planning and normal business activity. We note that the ongoing Section 232 investigation into timber and timber products is sure to target lumber, but it may also expand to many others forest products. Uncertainty is now a constant in the sector.
…Tariffs on Canadian lumber imports are on hold pending the outcome of a Section 232 investigation. However, the long-standing softwood lumber dispute rumbles on; with duty rates set to more than double in the second half of 2025, price risk for S-P-F appears to be upside-weighted from current levels. SYP producers—and perhaps to a lesser extent European lumber exporters—should benefit from a drop in the volume of S-P-F going to the US when/if higher duties/tariffs are implemented. OSB and plywood could also be impacted by the Section 232 outcome. In OSB, a tariff on Canadian imports would likely see needed mill downtime north of the border.
SLAVE LAKE, Alberta — On Saturday, May 24, West Fraser’s Slave Lake Veneer plant celebrated its 50th anniversary with the community of Slave Lake. Several hundred community members, elected officials, Indigenous leaders, employees and retirees joined the company for a day of festivities, including lunch, bouncy castles, face painting and an opportunity to learn more about the history of Slave Lake Veneer’s operations. These directly employ 150 local residents, mostly in the mill, but also in the woodlands department, as well hundreds of more with contractors that supply the operation. …West Fraser acquired Slave Lake Veneer in 1999, as part of its acquisition of Zeidler Forest Products. At the time, the mill operated as both a veneer plant and a stud mill. In 2016, all lumber production was transferred to the newly-acquired sawmill in High Prairie. Today, veneer output is almost 13 times higher than when the plant opened in 1973.
As Prime Minister Mark Carney’s Liberal government plans billions in financing for builders of prefabricated homes, one expert says it’s a “significant amount of money” and “a very healthy kick-start” for the industry. The federal government’s Build Canada Homes (BCH) plan promises, among other things, more than $25 billion in financing to “innovative prefabricated home builders in Canada,” according to the Liberals’ website. Ramping up prefabrication could result in cheaper, faster and better-quality homes, said Tony Yang, professor of structural and earthquake engineering at University of British Columbia. “We are building too slowly right now,” he said. “We are lacking skilled workers on site.” The goal of prefab is to shift manufacturing from construction sites, which he called relatively inefficient, onto production lines that operate more quickly through repetition. 
One of Canada’s lumber producers, Groupe Rémabec, will temporarily lay off most of its workers as the industry faces rising US duties and weakening demand. The manufacturing division, Arbec Forest Products, is shutting down indefinitely, leading to more than 1,000 immediate job cuts. The number may reach 1,400 in the coming weeks, according to a company statement that blamed “persistent imbalances in both access to the resource and international markets.” Groupe Rémabec employs about 2,000 people and is headquartered in La Tuque, Quebec, about 300 kilometers north of Montreal. President Trump’s administration is poised to more than double the duties on Canadian softwood lumber. …Rémabec said, with Arbec’s deposits representing an “astronomical amount.” …Rémabec also said a “feeling of exasperation is widespread” in the Quebec forestry industry over regulations that have created “an increasingly unstable ecosystem, without predictability or coherence.” The Quebec government has been trying to modernize its forestry legislation.
At International Pulp Week, three speakers discussed businesses that connect to China’s role in the global pulp industry — including trading, port logistics and the futures market. Haidong Weng, Executive Vice President of Pulp & Paper Research at Xiamen C&D… explained that after the US implemented its third wave of tariffs, Chinese exports of paper and board to the US fell sharply, with vessel density in major Chinese ports reflecting a significant pullback in trade flows. …He also described the cascading effects on US retail markets. …The scale and resilience of China’s port logistics were front and centre in a presentation by Tian Jun, representing the Shanghai International Port Group’s Luo Jing Terminal. Tian explained that SIPG views pulp as a strategic growth cargo across its network of general cargo terminals. …Another presentation came via video from Chi-Fei Fei of the Shanghai Futures Exchange (SHFE), who provided an overview of China’s pulp futures market.
At International Pulp Week, Mathieu Wener, Senior Economist at Numera Analytics, provided a detailed overview of current trends in key end-use markets for pulp, with a particular focus on tissue and printing and writing papers. Drawing on recent data and modelling, he examined how these sectors have evolved post-pandemic, what is driving demand patterns today, and what may lie ahead. Wener began with tissue markets, where profitability has remained strong despite considerable cost pressures in recent years. “Producers passed through rising costs since 2022,” he noted, showing how eurozone parent roll and pulp prices had shifted over that period. Although price differentials between pulp and tissue had narrowed, margins remained healthy.” …Wener underscored the importance of tracking both macroeconomic forces and demographic trends in shaping pulp demand. For tissue, slowing population growth and cautious consumer behaviour would temper growth expectations. For printing and writing papers, the secular decline would continue, but at a somewhat more stable pace.
The final presenter at International Pulp Week, Emanuele Bona, VP of Europe for the Pulp and Paper Products Council (PPPC), provided a comprehensive update on global market pulp demand trends, with a particular focus on the rebound underway in 2025 and the longer-term outlook for key markets and product segments. Bona began by noting that 2024 had been a weak year for market pulp demand, with global chemical market pulp demand falling by 0.9 percent. However, the first months of 2025 showed a marked improvement. “In 2025, after four months, demand is up almost one million tonnes,” he reported. Both softwood and hardwood pulp segments contributed to this recovery. …Looking ahead, Bona projected that global market pulp demand would return to growth but at a more moderate pace. “Growth to average 1.5 percent through 2029,” he said. The long-term trend for softwood pulp was expected to remain flat at best, while hardwood demand growth was projected to slow despite ongoing substitution trends.
As Canada is again dealing with massive wildfires, the increasing severity of the natural disasters is having the knock-on effect of spiking the demand for water bomber planes — and it will be years before Canada gets its hands on a new one. Premiers gathered in Saskatchewan this week, one of the provinces currently gripped by wildfires. They were primarily meeting to discuss major infrastructure projects, but a number of premiers talked to reporters about dealing with the wildfire situation. Manitoba Premier Wab Kinew, whose province has also seen thousands flee wildfires in recent weeks, mentioned that his government is waiting for an order of water bombers — but he doesn’t expect them to be delivered any time soon. …John Gradek, an aviation management lecturer at McGill University, agreed [with Premier Ford] that it’s well past time for Canada to have a nationalized water bomber fleet.
Eruptions can’t be prevented, so scientists have focused on improving early detection technologies. New work being done by NASA and the Smithsonian Institution builds upon the existing knowledge that changes in tree leaves can signify a volcanic eruption. Magma releases carbon dioxide, sulphur dioxide, and other gases as it ascends. Nearby trees absorb the carbon dioxide and become greener and more lush in response. According to the new research, these changes are detectable from space. The greener foliage can be read by NASA satellites like Landsat 8, as well as airborne instruments from the Airborne Validation Unified Experiment: Land to Ocean (AVUELO). There are roughly 1350 active volcanoes in the world, many of them in remote or hard-to-navigate terrain. Volcanic carbon dioxide is difficult to detect remotely. Scientists often have to travel to volcanoes to take direct measurements, which is a difficult and sometimes hazardous assignment.
Canada’s wildfire season has had an early and intense start, with states of emergency declared in Saskatchewan and Manitoba and forecasts warning of severe conditions across central and eastern Canada. Wildfire smoke is already crossing borders, affecting millions. In this Q&A, wildfire experts Dr. Lori Daniels and Dr. Mathieu Bourbonnais, co-directors of the 
Crystal To… is part of a small crew of tree planters who are slowly filling the Whitehorse South fuel break with aspen. It’s her first time doing the job. …The goal of the fuel break is to protect the capital city from wildfires by creating a natural barrier, removing all the highly flammable conifers in an 800-hectare area and replacing them with more fire-resistant aspens. The Yukon government began work on the fuel break in 2020, near the Mary Lake subdivision. It’s one of the first such projects in Canada, and the goal is to have it finished by 2032. The aspens are being planted by the thousands every summer. This year, 232,000 seedlings will be planted.
Following fire mitigation efforts in and around the 108 Mile Ranch, a new generation of trees have been planted to restore the land. West Fraser 100 Mile donated 1,200 trees that were planted by treeplanters from Zanzibar Holdings Ltd. on behalf of the 108 Mile Ranch Greenbelt Commission. Greenbelt commissioner Chris Betuzzi said it’s all part of the commission’s work to secure the 108 Mile Ranch against future fire seasons and avoid a repeat of the 2017 Gustafsen fire, which burned parts of Walker Valley. As a registered forest technologist, he said helping manage the forest is a responsibility close to his heart. In May of 2024, Betuzzi said they carried out fire mitigation efforts in three areas along the Greenbelt, including Donsleequa Road, Qua Place and Gloinnzum Drive to reduce forest fuel in the event of a wildfire. Betuzzi said they had Tsi Del Del Enterprises Ltd come up to process the slash piles and fibre.
Quebec’s sweeping reform of how forests are managed is causing concerns among Indigenous leaders, conservation groups and unions, who warn the changes prioritize logging over long-term health of the ecosystem. Bill 97, tabled this spring by Minister of Natural Resources and Forests Maïté Blanchette Vézina, proposes to divide the forest into three zones: one that prioritizes conservation, one focused on timber production and a third zone for multiple uses. At least 30 per cent of Quebec’s forests will fall into that second category, Blanchette Vézina said. Speaking at the legislative hearing on Bill 97, Lac-Simon Anishnabe Nation Chief Lucien Wabanonik says he wants to see it scrapped and rewritten from scratch in collaboration with First Nations people. “They call it triade in French, meaning 30 per cent of the territory will be specifically used by the industry in exclusion of other users,” he said. “It’s very negative on our rights as First Nations.”
The sun and sky had a much more eerie appearance to it on Saturday evening and Sunday morning. It was a sign that smoke from wildfires burning more than 4,000 miles (6,400km) away in central Canada had made it across the Atlantic to sit in the skies over the UK. BBC WeatherWatchers from all corners of the country were out capturing the spectacle. …The change in the appearance of the sun and sky is due to smoke particles in the atmosphere scattering the blue wavelengths of light more, allowing predominantly orange and red hues to reach our eyes. …The presence of wildfire smoke from North America over the UK, whilst not common, does occasionally happen during the summer months. …Here in the UK, the smoke plume is at too high an altitude to affect our air quality.
With warmer, drier conditions expected to increase across B.C., people are advised to stay prepared for climate-related emergencies. …People are encouraged to prepare grab-and-go bags, create an emergency and evacuation plan, create an Emergency Support Services profile through their B.C. Services Card app and ensure they have renter’s or homeowner’s insurance for their property. …Warm and dry conditions are expected throughout the province this month, and with that comes an elevated risk of wildfire. Northeastern B.C. is continuing to experience prolonged drought and is expected to remain at high risk for wildfire this summer. …In addition to wildfire risk, the Province is also closely monitoring key indicators of drought risk, including snowpack. 
Fighting forest fires has always been a physically demanding and dangerous job. But it can take a toll on firefighters’ mental health as well. In 2023, the deaths of six wildland firefighters in B.C. highlighted the importance of mental health, both for frontline responders and support staff. Wildland firefighters are challenged with stress and exhaustion, but the loss of colleagues heavily contributed to the mental toll on firefighters during the 2023 wildfire season, said Jessa Barber, a former wildland firefighter who is now a safety officer with the BC Wildfire Service. …BC Wildfire said it is being proactive, implementing policies and practices to support the mental health of its staff. …One of these practices is the New Recruit Boot Camp, which prioritizes educating recruits about the risks and dangers of being a wildland firefighter both physically and mentally. Ongoing support is provided to recruits.
“Wildfires are happening more frequently. They’re getting bigger. They’re emitting more smoke,” Paige Fischer, a professor of environmental sustainability at the University of Michigan says. “The climate models are projecting that we’re going to have more frequent, more severe wildfires.” As of Thursday, the 
In response to the Dryden Creek fire, as this wildfire is called, Squamish Fire Rescue said in a post late Monday night that the District’s emergency response team is working out of the Emergency Operations Centre, located at Fire Hall 1 in Valleycliffe. The out of control fire is located above the eastern end of Depot Road, in the north end of Squamish. It said the BC Wildfire Service has “actively and aggressively” attacked the wildfire thus far by air and with ground crews and would continue to late into the night, and will begin again early this morning. Aerial attack will also resume early Tuesday morning, the post said. Late last night the District of Squamish issued evacuation alerts to those living in properties at the east end of Depot Road, east of Highway 99 including the campground Mountain Fun Basecamp and at the end of Tantalus Road.
Smoke from wildfires in northern Alberta and northeastern B.C. reached Calgary this weekend, resulting in poor air quality in the city through the weekend and into Monday morning. Fire bans remain in effect for a large part of Alberta, including in all of Rocky View County, as six of the province’s forest areas are considered to be at extreme wildfire risk. An evacuation order for parts of the County of Grande Prairie was expanded again late Saturday after the Kiskatinaw River wildfire in B.C. crossed into Alberta Friday afternoon. …As of Monday night, there were 60 fires burning in the province, with 23 of them classified as out of control. More than 615,000 hectares have burned in Alberta so far in 2025. Fire personnel and aircraft from British Columbia, Yukon, Quebec, Nova Scotia, New Brunswick, Washington State, Oregon and Idaho have arrived in Alberta to assist with battling out-of-control blazes.
BC Wildfire Service crews are responding to an out-of-control, 10-hectare blaze south of Sproat Lake on Vancouver Island and say it’s expected to spread. Gordon Robinson, Coastal Fire Centre information officer, tells CHEK News 18 firefighters, three helicopters and a response officer are on scene in the Beverly Main area, west of Port Alberni. The fire currently measures 10 hectares, reads information online. The blaze was discovered on Sunday – and as of around 2 p.m., it’s listed as “out-of-control,” meaning it’s “anticipated to spread beyond the current perimeter or control line. Robinson says the fire is believed to be human-caused because there hasn’t been any lightning in the area. Crews are trying to determine the cause, the BC Wildfire website says, adding that such investigations “often take time and can be very complex.”
The forest fire west of Wabaseemoong is no longer the largest in Northwestern Ontario now that a blaze farther north has grown to more than 65,000 hectares. The Red Lake 12 fire that caused the evacuation of Deer Lake First Nation last week was blanketing 65,186 hectares as of Wednesday afternoon, according to the Ministry of Natural Resources. That’s more than 3.5 times the size estimated on Monday. Smoke from fires to the west hurt the ministry’s ability “to monitor the growth of Red Lake 12 consistently throughout the operational window,” MNR fire information officer Allison Lake told Newswatch in an email. “After several days of reduced visibility, conditions improved, allowing for high-level infrared scanning of wildland fire Red Lake 12. “As a result of the scanning, the fire has now been remapped at 65,186 hectares, which accounts for growth that has occurred over the past few days.”