As trade talks intensify between the US and Canada, those in the forest industry await what will happen with that long-term irritant of a trade file – softwood lumber. The US Lumber Coalition’s (USLC) July 2, 2025 press release, “US Self-Reliance in Softwood Lumber Hamstrung by Canadian Unfair Trade” made several inaccurate claims about the Canadian industry and softwood lumber trade. With sensitive and critical US-Canada trade negotiations ongoing, as well as the potential outcomes of the US Section 232 investigation on lumber imports, it is important to make sure there is correct information and understanding available to support both countries with meaningful dialogue. As industry consultants based in British Columbia, we are compelled to correct a number of the USLC’s claims made which provide misleading perspectives of the Canadian forest industry and its softwood lumber exports to the US market. Our goal is to apply facts against these claims together with additional commentary that we believe will provide a more accurate assessment of the US and Canada softwood lumber situation. [go to Spar Tree Group Inc. or Russ Taylor Global for full list of ‘claims and responses’, or click Read More below]
…The longer-term objective of making the US more self-reliant on domestic lumber is only a notional strategy at this point. Canada is already the high-cost supplier to the US market – in part from US import duties – and imposing higher duties (and tariffs) on imported Canadian lumber will only increase lumber prices to US consumers for years to come. It is unfortunate that the USLC makes so many unsubstantiated claims, which are designed to simply evoke emotional reactions. A clear and supported analysis of the facts with defined assumptions is a much better way to improve the dialogue and create accurate communication. The US and Canada need to work together to grow their collective share of wood products in the North American market and not to push for short-term, non-market duties and tariffs that will have potentially long-term consequences. Efforts to promote wood over steel and concrete are a much better longer-term strategy.
Business leaders and academics say they hope to see Canada and the US maintain free trade protections for most goods once an agreement is reached, even if the negotiations can’t stave off certain sectoral tariffs. It’s unclear if the two countries will stick to the Aug. 1 deadline for wrapping up talks. Prime Minister Mark Carney said negotiations were in an “intense phase,” but US President Donald Trump told reporters last week that Canada wasn’t a priority. Canadian Federation of Independent Business president Dan Kelly said his organization’s members feel “a good chunk” of trade must remain tariff-free in order for talks to be considered successful. …Kelly said he would not consider it a win for Canada if its trade agreement ends up looking similar to the EU deal. He said the goal should be to keep zero tariffs on products that are currently protected under the CUSMA.
BURNABY, BC – The United Steelworkers union (USW) District 3 and the USW Wood Council are calling on the federal government to take urgent action in response to the latest escalation in the softwood lumber trade dispute. …“This latest increase, along with other threatened tariffs, is yet another blow to workers, communities and the long-term sustainability of our industry,” said Scott Lunny, USW Western Canada Director. “We represent thousands of loggers and mill workers… and their families, are at risk – governments need to act now.” …“It’s a constant attack on our industry and our workforce from the US administration. ….In addition to calling for a deal on softwood lumber to be a priority for Canada in trade talks with the US. …“These duties are unfair and will only drive up housing costs for U.S. consumers, while putting thousands of Canadian jobs at risk,” said Jeff Bromley, USW Wood Council Chair.
BC’s independent wood product makers say hundreds of small- and medium-sized manufacturers may be forced to shut down in light of the latest decision from the US to raise anti-dumping duties on Canadian softwood… [which] includes a requirement for Canadian companies to retroactively remit duties for products shipped to the US since Jan.1, 2023. Association chair Andy Rielly says that requirement could not only force small BC producers to shut down, but may also threaten operators’ personal assets as they may have to risk using their homes as collateral to secure bonds to pay. …Association executive director Brian Menzies describes independent wood product producers as “collateral damage” in the trade war.” …“We acquire logs and lumber at ‘arm’s length’ from various suppliers on the open market, just like claims made by members of the US Lumber Coalition, and yet our Canadian companies along with U.S. consumers must pay these unfair and costly duties.”
A new report warns the impacts on B.C. 
BC’s forestry sector would have been brought to its knees Friday by new American duties on Canadian softwood lumber, if it wasn’t already flat on its back from being hammered by years of provincial government policies. …But even before the new duties, B.C.’s forestry sector was in a crisis. Annual harvest volumes are down by tens of millions of cubic metres, lumber production and exports have shrunk dramatically, export revenues have fallen, thousands of jobs have been lost, and dozens of mills have been curtailed or shuttered. The industry has blamed various BC NDP policies, including new old-growth logging deferrals… and extraordinarily long permitting delays. …If New Democrats are serious about saving the industry from ruin, now would seem to be the time to shelve the never-ending reviews and actually do something. The government could spin a pivot to pro-forestry policies not as a retreat, but as a made-in-BC response to American trade aggression.
Mushkegowuk-James Bay MPP Guy Bourgouin is calling on the province to take immediate action to protect Ontario’s forestry sector in the wake of new U.S. tariffs on Canadian lumber. Bourgouin said the impact of the tariffs imposed by U.S. president Donald Trump could be devastating for northern communities that depend on the industry. “The anti-dumping tariffs imposed by Trump will devastate our lumber industry. Condemning Trump’s actions isn’t enough. We saw it with the auto sector, with steel, and now with lumber — the Premier’s ‘wait and see’ approach is leaving thousands of workers vulnerable to layoffs.” Bourgouin criticized the Ford government for failing to present a concrete strategy, calling their approach “an afterthought” for northern Ontario’s economy. …Ontario NDP party argues that using Ontario-produced wood could tackle multiple challenges at once, safeguarding forestry jobs, boosting local economies, and addressing the province’s housing shortage with “made-in-Ontario” solutions.
Members of the forest industry and the provincial government weighed in Monday on the Trump administration’s decision to raise tariffs on Canadian softwood lumber. Last week, the U.S. Commerce Department decided to raise anti-dumping duties on Canadian softwood to 20.56 per cent. A news release stated the province’s forest industry is “deeply troubled” by the decision to increase the duties by over 14 per cent. “Increasing anti-dumping duties to 20.56 per cent from the current average rate of 7.66 per cent is unjustified,” read the statement. “New Brunswick’s softwood lumber producers already face punitive and unfair anti-dumping and countervailing duties.” According to the statement, when combined with an anticipated rise in countervailing duties, the new increase to anti-dumping duties will mean an expected new total of 34 per cent by the middle of August.
A cornerstone industry of northwestern Ontario is at risk, says a regional municipal group, with the decision by the U.S. Department of Commerce to raise anti-dumping duties on Canadian softwood lumber to 20.56 per cent. “Forestry is the economic lifeblood of communities across northwestern Ontario,” said Rick Dumas, president of the Northwestern Ontario Municipal Association (NOMA), in a July 28 statement. “This unjustified and protectionist action will have a direct and harmful impact on workers, families, Indigenous communities, and local economies throughout our region.” The provincial government called the U.S. commerce department’s decision to increase duties on Canadian softwood lumber exports an “unjust burden” on American consumers that will raise construction costs in the U.S., make homes less affordable, and negatively impact economic growth on both sides of the border. “We remain firm in our position that these duties should be lifted entirely, for the benefit of workers and families on both sides of the border.”
The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. While some elements of US trade policy have started to become more concrete in recent weeks, trade negotiations are fluid, threats of new sectoral tariffs continue, and US trade actions remain unpredictable. …The current tariff scenario has global growth slowing modestly to around 2½% by the end of 2025 before returning to around 3% over 2026 and 2027. CPI inflation was 1.9% in June, up slightly from the previous month. …Based on a range of indicators, underlying inflation is assessed to be around 2½%.
I am surprised at how President Trump is gradually succeeding in his goal. …Canada, along with China, is the only country standing up to the US, but it is inevitable that if no agreement is reached, the chances of a recession will increase. …Canada needs the US to avoid the worst, but the point of the article is different: how much does the US need Canada? My impression is that this issue is often underestimated. …We don’t need their lumber. But is that really the case? …Why Canadian lumber is essential. …The first and probably most important reason is that US forests are mainly privately owned (by companies or families). …Becoming less dependent on Canada is extremely complicated for the US due to the usual logistical challenges. …This industry has been in gradual decline for decades, and wanting to save it in order to be less dependent on Canada is a waste of resources.
The U.S. Commerce Department has announced it is nearly tripling its anti-dumping duties on Canadian lumber imports from 7.66% to 20.56% following its annual review of existing tariffs. The anti-dumping duties are in addition to current countervailing duties set at 6.74%, which would bring the total lumber duties above 27%. However, the countervailing duty rate is expected to move higher on Aug. 8. Commerce issued a preliminary determination on countervailing duties earlier this year that would raise the countervailing duty rate to 14.38%. Moreover, President Trump’s Section 232 [investigation] could result in higher lumber tariffs. …For years, NAHB has been leading the fight against lumber tariffs because of their detrimental effect on housing affordability. In effect, the lumber tariffs act as a tax on American builders, home buyers and consumers. …We are also urging the administration to move immediately to enter into negotiations with Canada on a new softwood lumber agreement that will… eliminate tariffs altogether.
OTTAWA—Home buyers and builders in Canada are in retreat, adding to the woes of an economy struggling under the weight of President Trump’s tariffs. Housing helped spur growth in Canada just prior to, and after the worst of, the Covid-19 pandemic. …Data this month indicated existing-home sales climbed modestly for three straight months as of June. But economists and real estate agents are far from convinced it signals recovery after a tariff-fueled slowdown. They note the sales rebound was the result of sellers cutting their listing price. Housing affordability remains stretched in Canada, according to the Bank of Canada data. …For builders, prices for new homes are failing to cover higher costs for labor, loans and taxes and fees set at the municipal level. The Canadian Home Builders’ Association said its own confidence index is at historically pessimistic levels. [to access the full story a WSJ subscription is required]
Canada’s first commercial carbon capture cement facility is now under construction in Mississauga Ont., backed by $10 million in federal funding. The project is part of the country’s effort to reduce industrial emissions. The project, led by Calgary-based startup Carbon Upcycling in partnership with Ash Grove Cement, aims to capture carbon dioxide from cement production and turn it into a low-carbon material that can replace part of traditional cement. Minister Evan Solomon, … said “These collaborative projects supporting our climate goals and enhancing our global competitiveness”. The facility will use Carbon Upcycling’s technology to mix captured CO2 with steel byproducts like slag to create a powder similar to cement used in construction. Carbon Upcycling CEO Apoorv Sinha said the system could reduce emissions from cement by up to 40%. …Sinha said the new facility will store up to 150 kilograms of carbon dioxide in every tonne of low-carbon cement it produces.
Canada is home to nearly 347 million hectares of forest, which account for about 9% of the world’s forests. As I travel this week across the northern boreal to visit mill and woodlands employees and local community leaders, I’m reminded of the vastness of our forests, the 200,000 direct jobs and families that rely upon them, and how the resilience of those workers is part of both an ever-evolving story and my sense of self as a Canadian. Our connection to our forests has also informed our role in the world beyond commerce, and beyond symbols. …As we endure another devastating wildfire season across Canada, there is more discussion at the community level about turning to more active forest management as a solution. …In a world in which Canada’s exportable natural assets are being besieged by avoidable uncertainty, Canada’s forests are our most sustainable, renewable resource. …To me, being Canadian means having a privileged relationship with nature, especially with our trees and forests. 
A recent report out of British Columbia suggests using beneficial fires to build wildfire resilience. In the Yukon, that idea is not new — but finding a way to reap the benefits of fire while preventing devastation is a delicate balancing act. …the 
As the B.C. Day long weekend approaches, people are encouraged to stay informed about wildfire conditions, be prepared and plan travel. Warming summer temperatures and ongoing drought mean much of British Columbia is at heightened risk of wildfire, even after recent cooler temperatures and rain. Environment and Climate Change Canada (ECCC) has forecast hot temperatures this week in B.C., with heat warnings currently in place for parts of the province. People are encouraged to prepare for hot summer weather. To access the Province’s PreparedBC extreme-heat preparedness guide, 
KENORA — Across Northwestern Ontario, the public is being urged to limit time outdoors due to “extremely high levels of air pollution.” The poor air quality is being caused by smoke from forest fires in the Prairies, according to an air quality warning issued by Environment Canada and the Province of Ontario Tuesday morning. The warning extends from east of Marathon — including Biigtigong Nishnaabeg — west to the Manitoba border and extends as far north as to include communities like Wunnumin Lake, Muskrat Dam and Deer Lake. Poor air quality is expected to persist through Thursday for most areas, according to the updated warning, extending the expected duration.
