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).
Richard Eaton, senior judge on the US Court of International Trade, has extended the US administration’s deadline for refunding about US$166 billion in tariffs. Eaton had orginally ordered US Customs and Border Protection to begin the refunding process at the start of the month after the US Supreme Court struck down global tariffs set by president Trump. …The administration has been inundated with lawsuits from companies like Costco, FedEx, and Pandora Jewelry – all looking to get their money back since Eaton’s order meant that everyone who had paid tariffs was entitled to a refund. Barnes, Richardson & Colburn partner 
The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario announced an investment of up to $94.5 million over five years through the Sectoral Workforce Solutions Program (SWSP). This investment will produce consistent, foundational labour market information (LMI) across key sectors, providing the information needed to help better coordinate the supply and demand of skilled labour while supporting a stronger economy. Through this initiative, 14 organizations will develop a range of informational products and employer toolkits to help workers and businesses adapt to current labour market challenges. The investment will support organizations in key sectors, including construction, trucking, advanced manufacturing, aerospace, tourism, forestry, agriculture, mining, energy, information and communications technology, the environment, and the bio-economy. 
The Municipality of North Cowichan is calling for urgent support to help laid off workers. In an open letter to the minister of jobs and families from the municipality, United Steelworkers Union, and Western Forest Products said workers continue to be impacted by layoffs. “These workers aren’t facing a short-term layoff,” said the letter. “They’ve been formally advised that there will be no return to work this year. Yet many are now being told their Employment Insurance (EI) benefits will soon expire.” Last year, Western Forest Products announced the curtailment of 120 workers at the Chemainus sawmill due to what they call weak market conditions and limited access to economically viable fire. It’s estimated 80 workers will be affected if changes aren’t done to protect their benefits that are scheduled to end in March, and all parties are asking the minister to treat workers equally.
STURGEON COUNTY, AB — Corey Hogan, Parliamentary Secretary to the Minister of Energy and Natural Resources, announced a federal investment of over $4.4 million for ten projects that will strengthen the forest sector in Alberta, Manitoba and Saskatchewan. These projects will advance manufacturing and processing, diversify Canada’s forest products and their export markets and support First Nation and Métis groups and forestry businesses. Among the projects funded, Western Archrib Enterprises Ltd. is receiving $2.3 million through the Investments in Forest Industry Transformation program to commission a 160,000-square-foot mass timber plant in Sturgeon County, Alberta. The facility represents a total capital investment of over $80 million and will transform Western Archrib’s operations to a fully automated manufacturing line, increasing production capacity from 12 million to 30–35 million board feet annually. This investment will strengthen Alberta’s supply chain for advanced wood-based building material, such as mass timber panels, which directly support the construction industry and housing supply.
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.
OTTAWA — The federal government is being accused of creating an uneven playing field in Canada’s shipping industry, and critics claim the Prime Minister’s Office is unwilling to rectify it. Later this spring, Ottawa is expected to launch a federal subsidy program to help reduce the cost of shipping lumber and steel between provinces by 50%. But the subsidies — promised by Carney back in November — will only go to rail companies. “We support this initiative to give a boost to those Canadian industries. But what we were asking was for parity because many destinations and commodities, only maritime transport can handle that,” said Etienne Duchesne, business development project manager at Desgagnés, a maritime shipping company based in Quebec. …In the House of Commons last week, Bloc Québécois MP Claude DeBellefeuille said the government was creating “unfair competition between rail transportation and marine transportation,” putting jobs and supply chains at risk.
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.
VANCOUVER, BC – Canfor Pulp Products announced that at the special meeting of the holders of common shares in the capital of the Company held earlier, the Shareholders voted in favour of approving the special resolution authorizing the previously announced arrangement whereby Canfor Corporation will acquire all of the issued and outstanding Common Shares that it and its affiliates do not already own by way of a statutory plan of arrangement. …The Arrangement was approved by 96.02% of the Shareholders and 84.42% of the Shareholders excluding any votes of the Purchaser and its affiliates and any other Shareholders whose votes were required to be excluded. …Assuming that all remaining approvals are obtained and all other remaining conditions precedent to the completion of the Arrangement are satisfied or waived, the Company anticipates that the Arrangement will be completed on or about March 17, 2026.
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.
As mass timber construction continues to build momentum, critical lessons learned on jobsites are emerging to ensure successful project outcomes. The aesthetics and many benefits of mass timber are well known, but bringing these projects to life involves significant technical and logistical challenges. Common issues that need careful consideration include moisture management, lack of experience, site logistics, safety and more. “The single most important time in any mass timber project – and where most mistakes are made – is early involvement,” said Scott Comfort, president of Seagate Mass Timber who was a speaker at Buildex Vancouver. “You can never talk about mass timber too early in your project. Always have an engineer lifting and bracing plan in place – absolutely critical for the safety of the job and for it to do well.” …To help the industry with moisture management, best practices are being explored by the Canadian Wood Council and FPInnovations.
Leveraging locally made forest products supports local jobs, efficient builds, and community resilience. …Forestry is more than just an industry; it is the lifeblood of some 300 Canadian communities. In the face of trade and market headwinds, some forest-dependent communities across the country are experiencing a worrying trend: the hollowing out of their economic base. Recent trade and market impacts on forestry have reduced production or closed mills, eliminated jobs, and reduced municipal revenues. With new challenges bring new opportunity – to take action on what we control. To streamline regulations to make our industries more competitive, diversify export markets, and do more here at home with Canadian grown and made products. Municipalities across the country can be part of the solution to help improve prospects for the forestry sector and its employees. Municipalities have the power to choose Canadian wood and wood fibre-based products in local projects.
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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.
City of Powell River councillors were provided an overview on March 5 of Tla’amin Nation’s negotiations to repatriate access to forest lands currently held by Western Forest Products (WFP). Adam Culos, general manager of Thichum Forest Products, said that Tla’amin had announced a milestone agreement, where Thichum Forest Products, through Tla’amin, is working on an agreement with WFP to acquire Tree Farm Licence 39 block one. Seanna McConnell, Western Forest Products vice-president, Indigenous partnerships, said Qwoqwnes Forestry Holdings Limited Partnership, wholly owned by Tla’amin, will be purchasing 100 per cent ownership of WFP’s Stillwater forest operation for $80 million. …Culos said the acquisition … supports Thichum’s long-term success through investment in their business and the future of the community, [adding] that almost all the wood supplies domestic mills, so there are three fibre supply agreements. One will be WFP, supporting the company’s five coastal mills, along with Mosaic Forest Management and Domtar.
Webinar: March 24, 2026 | Invasive species are an unintended consequence of globalization and one that is wreaking havoc on forest ecosystems. From the blister rust fungus that decimated BC’s white pines to more recent invasions of Dutch elm disease and the emerald ash borer beetle, invasive pests and pathogens are a real and present danger that are reshaping forest and urban ecosystems in lasting ways. Join Dr. Richard Hamelin, a forest pathologist specializing in forest health and the application of genomics to disease management, for a timely and engaging look at the scope of the problem and the scientific tools being used to respond, including the application of genomics and tree breeding. Increasingly, citizen scientists play a critical role in detecting emerging threats, helping enable early intervention and improved forest protection.
City of Powell River Council has officially endorsed the Forestry is a Solution campaign led by a broad coalition of community leaders, workers and forest industry advocates. At the March 6 city council meeting, councillors reviewed correspondence from Kim Haakstad, CEO of BC Council of Forest Industries, which has the goal to demonstrate deep public support for BC’s forest sector and ensure it remains a strategic asset for the future. The request had three components. The first was to officially endorse the Forestry is a Solution campaign. Secondly, encourage community members to visit the forestryisasolution.com website to sign a petition and send a letter to their MLA, the minister of forests, the premier and the official opposition forest critic… and share information about the campaign. Mayor Ron Woznow said he had worked with 22 other mayors regarding the importance of forestry… especially in terms of the significant debt the province is facing.
The lack of significant snowfall in the mountains around Cowichan Lake could be a problem for water levels during the upcoming dry season, according to Brain Houle, the environment manager at the now closed Domtar pulp mill in Crofton. While Domtar shut the mill down earlier this year, the forest company agreed to continue operations at the weir until the end of 2026. Houle said that while there is still time to accumulate more snow before the winter ends, it is possible that the weather will not bring more snow to the mountains before warm weather begins the annual snow melt. “With the Crofton mill now shut down and water withdrawals from the river significantly reduced, it is even more important to avoid the need to use pumps this year,” …Houle said that a stakeholder meeting was recently held … to discuss water issues related to the Cowichan watershed in 2026, including weir operations.
More local governments, contractors and First Nations will take on wildfire-risk-mitigation roles in and around their communities thanks to a $30-million investment in training, equipment and FireSmart programs. “Through powerful partnerships with local communities, we’re doing the work to get ahead of wildfire season,” said Ravi Parmar, Minister of Forests. “We’re investing in local governments, contractors and First Nations to mitigate the risks of wildfire, protecting people and community. This is how we create jobs, support workers and build more resilient forests, restoring confidence in our sector.” The FireSmart Community Funding and Supports program is receiving an additional $15 million to continue prioritizing core FireSmart activities to protect the most vulnerable communities in B.C. The program is part of B.C.’s Community Resiliency Investment (CRI) program. Along with the Crown Land Wildfire Risk Reduction program, it reduces wildfire risk by funding planning, education, co-ordination and fuel-management activities on publicly owned and Crown land.
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.
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 president of a logging company says anti-logging activists are fuelling a “social crisis” in the Mauricie region by sabotaging his company’s legal and government-authorized forestry projects and he called on the Quebec government to take action to protect workers and restore order. Antoine Langlois, president and founder of Forex Langlois Inc., contacted The Gazette this week to denounce what he and police believe was an intentionally set fire in Lac-aux-Sables last month that destroyed two machines owned by his company. …Sgt. Valérie Beauchamp of the Sûreté du Québec said police believe the fire was set intentionally sometime during the previous night…. Anonymous activists did take responsibility for sabotaging a forest in the same region on Jan. 26. In a statement posted on the Instagram account of a collective called Soulèvements du fleuve, an “anonymous group” said they had inserted metal spikes in trees in the Mékinac forest north of Ste-Thècle.
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.
OLMYPIA, Washington – Washington state is poised to significantly expand its efforts to combat climate change with a proposed agreement to link its carbon market with those of California and Quebec. The move, announced Tuesday by the Washington Department of Ecology, aims to stabilize and reduce the costs associated with decarbonizing the state’s economy. The draft linkage agreement is now open for public comment until May 1, 2026, with the shared market potentially launching as early as 2027. This collaboration represents a major step forward in regional climate action, building upon Washington’s 2021 Climate Commitment Act. …The linkage would allow businesses in all three jurisdictions to participate in joint auctions and trade carbon allowances freely. This expanded market is expected to stabilize Washington’s relatively new and more expensive carbon market, as California and Quebec have been operating linked markets since 2014. While aligning with California and Quebec, Washington maintains distinct climate goals. 
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.