Marc Carney
Negotiations have been taking place as the US has been fundamentally transforming all its trading relationships. …In a positive development, earlier this month, the US reaffirmed a core commitment to our free trade agreement, Canada-United States-Mexico Agreement (CUSMA), by reinforcing that those Canadian exports to the US that are compliant with CUSMA will not be subject to US IEEPA tariffs. As a result, the actual US average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners, and more than 85% of Canada-US trade is now tariff-free. …In this context and consistent with Canada’s commitment to CUSMA, I am announcing that the Canadian government will now match the US by removing all of Canada’s tariffs on US goods specifically covered under CUSMA. This decision will take effect on September 1, 2025. …The Canadian government will begin our preparations for the CUSMA review process due next year.
Related coverage by Katie DeRosa in CBC News: BC jobs minister surprised at Ottawa’s move to drop retaliatory tariffs against US
BC’s forestry sector is awaiting the results of a US Commerce Department investigation into the imports of wood products, which could impose further tariffs on the beleaguered industry. It comes months after US President Trump launched a Section 232 investigation into whether importing timber, lumber and derivative products could pose a national security threat to the US. …”Lumber is just one of many sectors that could get impacted … maybe lumber gets a lower tariff, but plywood and OSB and pulp get a higher tariff. We don’t know,” said Russ Taylor. …Taylor says that, while the Section 232 tariffs could cause further mill curtailments in BC, the U.S. forestry industry doesn’t yet have the capacity to fill the void. …”And the US mills will be very happy to raise their price … at a discount to the Canadian price because that’s just free money in the short term for them,” he added. 
A fire at a lumber yard inside Quesnel city limits is being managed by West Fraser Mills and was expected to be completely extinguished on Monday, Aug. 25, the city’s fire chief said. The 500-square-foot fire at BC Eco Chips on Pinecrest Road was first spotted around 4 a.m. on Saturday, Aug. 23, leading to a response from six fire departments in the Cariboo Regional District, BC Wildfire Service and personnel from West Fraser Mills. Reached by phone on Aug. 25, Quesnel Fire Chief Ron Richert said that the fire departments and wildfire service withdrew from the scene around 8 p.m., leaving West Fraser Mills in charge of managing the scene. At that point, the chief said, there were still “significant flames” but it was fully contained. …Richert confirmed that there were no structured damaged or people hurt by the fire. The cause of the fire has yet to be determined.
JAFFRAY, BC — The BC Labour Relations Board has dismissed an application from unionized employees with Galloway Lumber Company seeking a court order against the employer in a labour dispute over a negotiated severance agreement due to the permanent closure of the Galloway sawmill, near Jaffray. While the labour board dismissed the application on Aug. 14, vice-chair Carmen Hamilton deferred the matter to the parties’ negotiated dispute resolution process. Meanwhile, both sides are have agreed to bring the matter before an arbitrator who is not available until January 2026. “At its heart, this matter is a contract interpretation dispute,” wrote Hamilton. The United Steelworkers Local L-405 is seeking roughly $1.2 million in severance that was negotiated as part of an adjustment plan that was negotiated following the closure of the mill.
Canadian business owners are sharing growing fears that things could go from bad to worse if the U.S.-imposed trade war doesn’t end soon. New data from the Canadian Federation of Independent Business (CFIB) shows those business owners are being hit the hardest, particularly in B.C. “Two-thirds of B.C. businesses import or export directly to the United States, and when you look at those who do so indirectly, so they buy from importers or exporters, that number jumps up to 80 per cent of all businesses exposed to trade with the United States. So, that’s a huge number,” Ryan Mitton, director of Legislative Affairs in B.C. at the CFIB said. He adds that the situation appears even more grim for hard-hit industries like steel and lumber. “…one in five in BC have been impacted by softwood lumber tariffs, and that’s the highest rate of all the provinces in Canada,” he adds.
The US Court of International Trade threw out a legal challenge from Canadian softwood lumber producers J.D. Irving Ltd. granting a motion-to-dismiss from the Commerce Department. Timothy Reif said in the opinion that J.D. Irving, which had challenged Commerce’s 2022 antidumping administrate review on grounds that the agency erred by assigning a higher cash deposit rate in the order, has its proper venue under a binational panel though the USMCA now reviewing the Commerce order. While the Canadian firm said it was challenging not the Commerce fine order but the instruction for the cash deposit rate. Reif said the challenge entered on the commerce final result and thus should rest before the USMCA panel. [to access the full story, a MLex.com subscription is required]
HAMILTON — The Ontario government is delivering on its plan to protect Ontario workers by investing $70 million in expanded training and employment services for those affected by U.S. tariffs and policies. This funding includes support for the province’s 
The United States is the top wood-importing country. Trade issues and tariffs could be a significant factor in determining the path of least resistance for lumber, lumber futures, and wood product prices over the coming weeks and months. …The offseason for lumber demand is on the horizon. The potential for increased price variance due to the uncertainty created by U.S.-Canada trade relations remains high, and the path of least resistance of U.S. short-term interest rates is likely to be lower. Time will tell if longer-term rates follow any Fed Rate cuts over the coming months. Lumber remains a critical construction material, and the current price levels offer a positive risk-reward profile. Accumulating lumber-related assets on a scale-down basis during periods of price weakness over the coming weeks and months could be optimal for 2026, provided the housing market improves and lumber demand rises. 
The Headlines
The lumber and sawmilling sector demands skilled leaders who combine technical expertise with sound business acumen. BCIT now offers two Associate Certificates, designed to be completed part-time and fully online in just 12 months, enabling working professionals to advance without leaving the industry. The Associate Certificate in the Business of Sawmilling (starting October 2025) focuses on the operational, financial, and strategic aspects of modern sawmill management. Topics include production planning, quality optimization, supply chain considerations, and market dynamics. Graduates are equipped to contribute to profitability and long-term competitiveness. The Associate Certificate in Industrial Wood Processing (IWP) (starting January 2026) emphasizes the science and technology of wood conversion. With courses in wood properties, manufacturing processes, quality control, and technical problem-solving, the program prepares participants to step into supervisory roles with confidence. Both programs are tailored for career advancement in the North American lumber industry.
Canada’s forests are burning. …Smoke from these fires has degraded air quality across Canada and the US. The situation has led some US policymakers to publicly blame Canada for failing to manage wildfires and to demand more active forest management. These critiques are hypocritical, given their record of climate change denial. …Yet beyond partisan politics, the US continues to impose tariffs on Canadian lumber, undermining our capacity to invest in stronger forest management. …Eliminating or reducing US tariffs would instantly raise the value of Canada’s standing forest stock, sending a price signal that makes forestry activity viable in regions that are currently too remote or costly to harvest. At the margin, higher returns would unlock investment in better forest management, including areas that are now left untouched because they are uneconomic to service. …Lifting tariffs would be the first step, but it would not be a cure-all. 
A prolonged heat wave gripping British Columbia has already toppled more than 20 daily high-temperature records, with forecasters warning the sweltering conditions are set to persist through mid-week. Environment Canada has extended heat warnings to large parts of the province, including Fraser Canyon, South Okanagan, and South Thompson, where highs in the upper 30s are expected to continue. Inland sections of the north and central coasts are forecast to reach up to 29C, while four special weather statements remain in effect for Vancouver Island. …Even as air quality improves, wildfire officials warn the soaring heat and dry air are fuelling dangerous conditions. The B.C. Wildfire Service said low relative humidity is making forest fuels highly susceptible to ignition… For insurers, the intensifying fire risk underscores a costly pattern. …Another active fire season … adds further pressure to an industry already grappling with rising catastrophe exposures in B.C.
The Forest Appeals Commission dismissed a Vanderhoof hunting and fishing lodge’s appeal of a $25,000 fine for cutting Crown timber without a licence. In an Aug. 13 decision, panel chair Maureen Baird upheld the March 2023 fine against Crystal Lake Resort Ltd. by the Ministry of Forests. Daniel Brooks, whose family bought the resort in 1975, admitted trees were cut without a licence in July 2020 on a right of way and the company asked, after the fact, for the Ministry of Forests to authorize the removal of merchantable timber. The ministry advised the company that it needed to have a licence to harvest in the first place. Brooks said he did not know he needed a licence. …The Ministry approved the required management plan, that allowed cutting trees if the resort had a forestry licence to do so.
In the Summer Almanac you’ll find these headlines and much more:
Peter Constabel, a professor in the biology department at the University of Victoria said that several years of repeated drought in B.C. mixed with heat stress has increased the likelihood of branches breaking off, it could even happen on a “perfectly calm day” without any breeze. The consequences can be tragic. Constabel, who specializes in tree health said, “it’s the drought that specifically causes this, and somehow it stresses the tree and drops the branch, or the branch falls. If you get cumulative droughts, of course, it weakens the tree overall”. …Dry spells can leave trees in a weakened state, Simon Fraser University biological sciences professor Jim Mattsson said, reducing photosynthesis and growth, cutting their energy or sugar reserves, and lowering production of chemical defences. All of these can cause a chain reaction increasing trees’ susceptibility to insects and fungal diseases, causing trees to rot inside, weaken and potentially topple over.
The Cowichan Valley Citizen has published two letters to the editor referencing the North Cowichan Municipal Forest Reserve
Interfor says it won’t proceed with its plan to spray forests in northern Ontario with a herbicide critics say is harmful. While the province said it was safe, First Nations and some municipalities were opposed to the plan to spray glyphosate over Crown land near Elliot Lake, Blind River, Espanola and other forest management areas in the north. Andrew Horahan, executive vice-president of Interfor’s Canadian operations, confirmed it won’t be conducting the aerial spray of the herbicide, at least for now. “Interfor is committed to responsible forest management and to maintaining open, constructive dialogue with our stakeholders and the communities in which we operate,” Horahan said in a statement. “The use of herbicide sprays is a carefully regulated and widely accepted industry practice, overseen by relevant authorities. For 2025, Interfor has chosen not to proceed with an herbicide application in the Pineland, Spanish and Northshore forests.”
The Wood Pellet Association of Canada’s annual conference is just around the corner! Register now for one of the biggest draws of the WPAC annual event: the tour. This time it’s the day before the conference, when we’ll learn more about the people, facilities, and communities behind the sector. Depart from Halifax Marriott Harbourfront Hotel around 8:30 am and enjoy a scenic drive to Hardwood Lands, where you will see the Shaw Renewables pellet plant. From there, we will make our way back to Halifax, stopping at an installation or for a scenic break. We will tour the Port of Halifax in the afternoon and return to the hotel by 4:00 pm. Don’t miss this chance to be inspired by those in our sector who are committed to producing clean, renewable and responsible energy from Canadian wood pellets. Space is limited. Cost: $124/person
The Province of B.C. is lending its expertise to Mosaic Forest Management as it develops plans to reopen the Bamfield Main Road, sections of which were rendered unsafe due to the Mt. Underwood wildfire. “We recognize the importance of Bamfield Road to the Huu‑ay‑aht First Nation and area residents,” said Mike Farnworth, Minister of Transportation and Transit. “There is substantial work necessary … to reopen Bamfield Road. Ensuring the safety of the travelling public is the top priority, and the Province will continue to support to Mosaic throughout this process.” Initial engineering assessments have determined a section of the Bamfield Road managed by Mosaic is unsafe for all traffic, prompting Mosaic to close the route with a section of the road being defined as a No Work Zone by BC Wildfire Services. Falling rocks, dangerous trees and a fire-damaged slope are presenting exceptionally challenging conditions, and there is no timeline for reopening the road in its current configuration.
Don’t miss the August WorkSafeBC Health and Safety News:
