Derek Nighbor
With over 200,000 direct jobs at stake, sector calls on the government of Canada to bring the same urgency to lumber as it has to steel, aluminum, and energy.
Canada’s forest sector is disappointed that yesterday’s discussions in Washington concluded without relief for 232-affected sectors, including lumber, as the long-standing Softwood Lumber dispute and recently applied tariffs on Canada’s wood manufacturing industry continue to put operations and jobs at risk across the country. While we recognize that the talks were described as substantive and appreciate that these negotiations are complex, after eight years of escalating duties on softwood lumber, the lack of tangible progress for forest sector workers and communities is deeply concerning. With more than 200,000 direct jobs and hundreds of towns and cities across Canada depending on a vibrant forest sector, lumber and forest products must be treated as a greater priority in Canada–U.S. trade discussions.
Our industry continues to face unjustified duties and tariffs that harm forestry workers here at home and raise costs for American families building and renovating their homes. We urge the Government of Canada to ensure that lumber and forest products are clearly on the agenda as talks continue this week. “We simply want to see more urgency, and frankly, we were left wanting more in the post-meeting reports coming out of yesterday’s discussions,” said Derek Nighbor, President and CEO of the Forest Products Association of Canada.
The US imports about 40% of the softwood lumber the nation uses each year, more than 80% of that from Canada. President Trump says that the US has the capacity to meet 95% of softwood lumber demand and directed federal officials to update policies and regulatory guidelines to expand domestic timber harvesting and curb the arrival of foreign lumber. …As researchers studying the forestry sector and international trade, we recognize that the US has ample forest resources. But replacing imports with domestic lumber isn’t as simple as it sounds. There are differences in tree species and quality, and U.S. lumber often comes at a higher cost, even with tariffs on imports. Challenges like limited labor and manufacturing capacity require long-term investments, which temporary tariffs and uncertain trade policies often fail to encourage. In addition, the amount of lumber imported tends to mirror the boom-and-bust cycles of housing construction, a dynamic that tariffs alone are unlikely to change.
President Trump ushered in new tariffs on imported furniture, kitchen cabinets and lumber on Tuesday, adding a fresh round of levies as he once again threatened to expand his trade war with China. Tariffs ranging from 10% to 50% on foreign wood products and furniture snapped into effect just after midnight. The tariffs are meant to encourage more domestic logging and furniture manufacturing. But critics say that the levies will raise prices for American consumers and could slow industries including home building that rely on materials from abroad. …Critics have called it a stretch to issue the furniture and lumber tariffs under the national-security-related law. …Some American manufacturers lobbied for the tariffs. …Some economists expect the higher price of lumber, along with home furnishings, will slow the pace of home building. That could set back the Trump administration’s goals of improving a weak housing market. [to assess the full story a NY Times subscription is required]
The US is now collecting tariffs on imported timber, lumber, kitchen cabinets, bathroom vanities and upholstered furniture, duties that threaten to raise the cost of renovations and deter new home purchases. …Trump described his wood and furniture tariffs as helping to “strengthen supply chains… and increase domestic capacity utilization for wood products.” Yet 
The Forest Products Association of Canada (FPAC) is extremely frustrated and deeply concerned by the U.S. government’s decision to impose Section 232 tariffs on Canadian softwood lumber and derivative products. These unjustified measures, which take effect today, threaten the livelihoods of more than 200,000 Canadians and the stability of hundreds of towns and cities that rely on a strong forest sector. “For eight years, forest workers and communities across Canada have borne the brunt of increasing duties—now exceeding 45 percent with the addition of these new tariffs,” said Derek Nighbor, President and CEO of FPAC. “These are punitive, protectionist measures with no basis in fact. They ignore decades of evidence that Canadian lumber strengthens, rather than threatens, U.S. national security and economic resilience.” Targeting responsibly managed, sustainably sourced Canadian wood products under the pretense of national security is both unjustified and deeply damaging. These actions undermine one of the most integrated, mutually beneficial trade relationships in the world, increasing costs for American families and homebuilders while jeopardising Canadian mills and workers.
President Trump has warned of disaster if the Supreme Court overturns his signature tariffs. For starters, it would unleash a bureaucratic nightmare involving reams of refund paper checks. Should the court uphold a US Court of Appeals ruling that Trump’s country-based tariffs are illegal, the government could owe the bulk of the $165 billion in duties collected so far this fiscal year back to companies that paid them. But they won’t have an easy time getting their money back; refunds are typically issued slowly and while the administration could streamline the process, experts fear that’s unlikely. …That means Trump likely won’t part with the funds easily if the tariffs are struck down, and the administration is expected to move quickly to reimpose levies using other legal authorities if that happens. The Supreme Court is expected to hear arguments in November in the case.
Prime Minister Mark Carney said Canadian and American officials are currently “negotiating terms” of a deal on tariffs a day after he met with the U.S. president to try and bring the trade war to a close — and Canada will come out ahead when the two sides come to an agreement. Speaking in question period … about what he accomplished out of his Oval Office sit-down with U.S. President Donald Trump, Carney said Canada already “has the best deal with the Americans” — most products are still being sold into the U.S. tariff-free despite Trump’s trade action — and “we will get an even better deal.” …Conservative Leader Pierre Poilievre said Carney “pathetically” offered up “a trillion-dollar gift” to Trump when speaking with the president, and it was an instance of him “bowing before the president in weakness.” …Daniel Smith said Carney is developing a rapport with the president…
WASHINGTON — Prime Minister Carney is set to return to Ottawa today with no deals to remove US tariffs from Canadian goods, but he’s leaving his key minister on Canada-US trade behind to keep pressing the Canadian case. US President Trump lavished praise on Carney during a meeting in the Oval Office on Tuesday and said the prime minister would walk away “very happy.” The president showed no signs of relenting on tariffs, however, and no deal was announced. Carney was scheduled to have a working breakfast this morning with Joshua Bolten, CEO of the Business Roundtable, while Foreign Affairs Minister Anita Anand was set to meet with Secretary of State Marco Rubio. Canada-US Trade Minister Dominic LeBlanc will be staying behind in Washington. LeBlanc told reporters Tuesday that substantial progress was made in the White House talks this week.
TORONTO – United Steelworkers union National Director Marty Warren issued the following statement as Prime Minister Mark Carney travels to Washington, D.C., to meet with US President Trump. …“Canada’s softwood lumber industry is on the brink of collapse. Thousands of workers and entire communities are hanging by a thread while Trump’s tariffs deindustrialize our economy and threaten good jobs across the country. We need urgent action – not more concessions. If free and fair trade in strategic sectors cannot be restored, the federal government must be ready to retaliate and take all necessary measures to protect the integrity of Canadian industrial production and employment. …We cannot allow foreign producers to use Canada as a back door for cheap, dirty, or diverted imports. …If Washington wants access to our market, it must come with respect for fair trade and for the workers who keep our economy running.”
PRINCE GEORGE – Prime Minister Mark Carney met with President Donald Trump to discuss the connection between energy cooperation and support for Canada’s steel and aluminum industries. However, this meeting raised some eyebrows among forestry industry leaders, who wondered why softwood was left out of the conversation. Brink Forest Products owner John Brink believes that the omission of softwood tariffs in discussions with the president is yet another setback for an already struggling sector. MLA Kiel Giddens also voiced his disappointment that softwood lumber was left off the agenda, especially since forestry ranks among Canada’s leading employers. Brink notes that wood manufacturing plants are still shutting down across the province, and he believes the West must unite to send a strong message to Ottawa. 
Plans to institute an “extended maintenance shutdown” of the Interfor lumber mill in Grand Forks is not a permanent shutdown, according to the company. On Sept. 4 Interfor Corporation announced plans to reduce its lumber production by approximately 145 million board feet at all operations between September and December of 2025, representing approximately 12 per cent of its normal output. The temporary curtailments will be through a combination of reduced operating hours, prolonged holiday breaks, reconfigured shifting schedules and extended maintenance shut-downs. The curtailments are expected to impact all of Interfor’s operating regions, with both the Canadian and U.S. operations expected to reduce their production levels by approximately 12 per cent each. “The curtailments are in response to persistently weak market conditions and ongoing economic uncertainty,” read a statement from the company.
Lumber futures have risen about 19% from a low hit in early September, driven by the production cuts, hopes that declining interest rates will revive the housing market and Trump’s import tax. The 10% levy is on top of steep duties on Canadian lumber, which are adjusted annually in a heavily litigated process that is the result of a decades-long trade dispute. Those antidumping and countervailing duties rose in August to about 35% for most Canadian producers, up from roughly 15%. Canada’s sawmills are by far the largest source of softwood lumber from beyond U.S. borders, fulfilling about 24% of domestic consumption last year. Other significant importers of softwood lumber, the type used to frame houses, include Brazil and European countries such as Germany and Sweden. Homebuilders argue that import taxes will raise construction costs. U.S. lumber producers and timberland owners, however, urged Trump to enact a tariff.
Lumber futures rose past $610 per thousand board feet in mid-October, approaching monthly highs as markets priced in tighter near-term supply and looming trade restrictions. Under newly announced US Section 232 tariffs that take effect on October 14th, imported softwood lumber will face a 10% duty and finished wood goods such as cabinets and furniture will face higher levies, prompting importers to front-load purchases and draw down inventories. Domestic output is also constrained as sawmills run cautiously after years of underinvestment, logging curbs in sensitive regions and slow capacity restarts have limited production. The cost and delay of switching suppliers is material given that Canadian lumber, which supplies much of US demand, already carries elevated antidumping and countervailing duties, intensifying the supply squeeze.
North America’s softwood lumber market looks likely to end 2025 no more settled than it was at the beginning. Producers and buyers alike continue navigating a landscape shaped by fluctuating demand, shifting trade patterns, and an uncertain housing outlook. Despite modest production declines in early 2025, the lumber market remains oversupplied. Mills across the US and Canada are contending with high inventories built up earlier in the year. Expectations of tariff hikes spurred an early rush of exports from Canada to the US, flooding the market while demand was soft. However, in the first half of 2025 softwood lumber exports from Canada to the US declined, while US imports from Europe in the first seven months of 2025 increased by 6% year-over-year. Underlying these supply pressures is a US housing market stuck in the doldrums. August saw an 8.5% decline in overall housing starts, with single-family construction down nearly 7%.
Canada’s international trade deficit swelled to $6.3 billion in August, its second-largest shortfall on record, as new United States tariffs took a heavy toll on key exports and injected fresh volatility into cross-border flows. The latest figures, released by Statistics Canada, show how US trade policy continues to affect Canadian exporters and make the Bank of Canada’s next interest rate decision more complicated. Exports in August fell 3% by value and 3.2% in volume, led by sharp declines in copper ore and lumber shipments, both of which were hit by new US tariffs. …Imports, meanwhile, rose 0.9%, buoyed by higher consumer goods, a sign of resilient household demand, even as business investment remained soft. …Exports to the US, Canada’s largest trading partner, fell 3.4% in August after three consecutive monthly gains, and were down 8% year-over-year. Exports to non-US destinations edged up 1.8% from a year ago but slipped 2% from July.
Canada’s merchandise trade deficit widened in August to C$6.32 billion ($4.53 billion) as exports fell faster in both value and volume than the rise in imports on a monthly basis, official government statistics showed on Tuesday. The trade deficit in August was led by drop in exports not only to its top trading partner the U.S. but also because its shipments to the rest of the world shrank in the month. Canada’s international trade numbers took a beating early this year as US President Trump imposed sectoral tariffs on the country, forcing businesses to reorient supply chain from its biggest trading partner. But the shift has been volatile and erratic. Analysts polled by Reuters had forecast the August trade deficit at C$5.55 billion, up from an upwardly revised C$3.82 billion in the prior month. Total exports dropped by 3% while imports increased 0.9%, StatsCan said.
The October newsletter includes these headlines and more:
Construction plastics are a major source of plastic waste in the province, and they urgently need to be measured, tracked and upcycled, says a B.C. organization that promotes sustainable built environments. Canada’s Federal Plastics Registry is expanding in 2026 to include construction plastics, but industry efforts are already underway to gather data and pilot new ways of reducing and reusing them, said Vancouver-based 
HUNTSVILLE — The Ontario government is investing $10 million through the Forest Sector Investment and Innovation Program to help Daiken North America upgrade its laminated board production line at its manufacturing facility in Huntsville. This investment will help the company bring a first-of-its-kind wood panel product to market, create jobs and boost productivity. As part of its plan to protect Ontario, the government is making strategic investments to help forest sector businesses adapt, compete and grow to stay resilient in the face of U.S. tariffs. …Daiken’s $70 million project will equip them to manufacture a new type of wood panel used in flooring, recreational vehicles and modular housing, while supporting 128 existing jobs and creating 10 new jobs. This made-in-Ontario forest product is the first of its kind in the world, offering a higher-performance, lower-cost alternative to imported material. 
FORT MILL, South Carolina — In a major stride towards its ambitious 2030 sustainability strategy, Domtar released its sustainability report. The report, entitled 
At the Kelsey Bay log sort near the town of Sayward, B.C., pulverized cedar bark [is] evidence of the millions of trees that departed from here, never to return. “We’ve seen our territories decimated,” Wei Wai Kum Chief Christopher Roberts explains. Behind him, five freshly cut, old-growth cedars line the warming pavement. These trees, Roberts says, help explain why the nation is here today. …nations are claiming sizable stakes in an industry that has long excluded them. Wei Wai Kum is one of four First Nations to purchase a $36-million stake in La-kwa sa mukw Forestry Partnership, a joint operation with logging company Western Forest Products Ltd. Their partnership came after companies agreed to leave canoe-carving trees in their communities. A sign, for Roberts, that the industry was willing to change. …Now … First Nations’ tenure opportunities have exploded as B.C.’s biggest forest companies sell off major parts of their long-held licences. 
KAMLOOPS, BC — The impacts of climate change on wildland fires, cultural burning practices and inter-government cooperation are areas of research and interest among experts gathered by the newly-formed Wildfire Resilience Consortium of Canada. The national consortium was announced in July and received $11.7 million in funding over four years from Natural Resources Canada through the Wildfire Resilient Futures Initiative. Delegates from across Canada met for the first time on Thompson Rivers University’s campus last week for a three-day conference, which aimed to facilitate discussion, networking, and to pool knowledge. Rapid-fire presentations saw recipients of NRCan’s Building and Mobilize Foundational Wildland Fire Knowledge program speak about their projects and research studies. …Many of the presenters spoke of the increasing severity of wildfires, highlighting recent record-breaking fire seasons. University of Northern B.C. professor Che Elkin said climate change is having an impact on forest ecosystems, affecting individual tree growth and mortality.
Wildfire is part of the natural lifecycle of a forest; but as Manitoba continues to battle the embers of its most devastating fire season in more than 30 years, its leaders are starting to consider a more active role in managing this critical resource to stave off the flames. In early October, as more than 70 wildland fires still smouldered across the province, Premier Wab Kinew and a handful of cabinet ministers released Manitoba’s first all-encompassing plan to slash carbon emissions in the next 25 years. Among the promised initiatives was a 
Last week, the Wildwood Ecoforest, located in Yellow Point just north of Ladysmith, got considerably closer to its original size. A successful campaign to raise $850,000 has allowed the 
NANAIMO, B.C. – Mosaic Forest Management addressed community concerns about alternative road access following an incident on October 5th that halted safety work at the Bamfield Main Road worksite. The Ministry of Transportation and Transit has assumed control of the Bamfield Main Road repairs under Section 8 of the Transportation Act, with Mosaic providing technical support. The project is targeted for completion by month’s end. The Brenner Main/Museum Main corridor … remains restricted to limited Mosaic crews and one industrial user with pre-existing access. …“We understand people are frustrated seeing what appears to be a drivable road,” said D’Arcy Henderson, Senior Vice President, Timberlands and Chief Operating Officer. “But we’ve identified dangerous trees and boulders that could fall at any time. Making the Brenner corridor safe for public use would require the same weeks of intensive work currently underway on Bamfield Main. We cannot split our resources and double the timeline.”
CASTLEGAR, BC — A BC Timber Sales manager for the Kootenay-Boundary admits they may have a hard time selling wood in the coming months as local mills cope with additional U.S. tariffs. George Edney told Castlegar city council this week that his organization, which manages and auctions 20% of the timber on Crown land, will have sales opening next week in the Boundary. …Interfor has curtailed its Grand Forks operations indefinitely due to “persistently weak market conditions.” …Edney said if the wood they offer in the Boundary doesn’t sell at the upset price, they can drop the price and try again, or they can withdraw it altogether, although typically they want the wood in the market. …Edney said they sold 581,000 cubic meters that BC Timber Sales in the Kootenays in 2024-25. Their target volume for 2025-26 is 715,000 cubic metres.
Anderson Creek Timber is currently hauling logs from its property located just south of Nelson above the Rail Trail at Mountain Station. The work will continue for another three-to-four weeks, said Doug Thorburn, a forester with Monticola Forest Ltd. that manages Anderson Creek’s forest properties. … The 600-hectare Anderson Creek Timber property is private land and is therefore governed by B.C.’s Private Managed Forest Land Act, which provides much less regulation than the Forest Act in areas such as biodiversity, watershed protection, wildlife protection and harvest guidelines. …Anderson Creek Timber and Kalesnikoff, which has a public Crown land tenure over much of the Anderson Creek watershed, are working on a watershed assessment for the area… The reason the company has not done public information sessions about its logging plans … is that on privately owned land, compared with public land, there is less obligation to do so.
ONTARIO — The Northwestern Ontario Innovation Centre has partnered with the Thunder Bay Community Economic Development Commission (CEDC), the Centre for Research and Innovation in the Bio-Economy (CRIBE), Lakehead University and Confederation College to launch the Boreal Springboard, an innovative initiative aimed at strengthening and diversifying the forestry sector in Northwestern Ontario. Graham Bracken, at the Northwestern Ontario Innovation Centre, said the launch comes at a critical time for forestry in the region. …“The trade pressures were really the impetus to focus people’s minds,” Bracken said. “The sector is really integrated, and any threat to protection on the sawmill side weakens the rest of the sector. There’s a real drive to look to trade diversification and try and develop new value-added products that we can access other markets with.” Bracken says these investors will bring skills, technologies, and solutions that can be adapted to strengthen and grow the sector.
THUNDER BAY — A number of stakeholders, largely from the forestry and energy sectors, got to provide regional input into a series of ongoing cross-province talks about energy policy. The Vaughn and Thunder Bay Chambers of Commerce held a roundtable discussion in the city on Oct. 2. The goal was for regional interests to provide requested input into an issues paper on energy being developed by the Toronto-based business lobby. …In Northwestern Ontario, she said, that includes longstanding sources like hydroelectricity and natural gas, but also continually-emerging opportunities connected to forestry and biomass. “We also talked a lot about the opportunities through the forest sector and biomass and the many things that can be created by harnessing forest products into energy,” Robinson said. “I think the most important thing was talking about how, from a forestry perspective, it really does check all the boxes.”
NOVA SCOTIA — Unseasonably warm temperatures proved challenging Monday as the fight against an out-of-control wildfire in Nova Scotia’s Annapolis Valley entered its second week. The Department of Natural Resources estimated that the fire at Lake George had grown slightly in 24 hours to just over 2.8 square kilometres, mainly because of dry and windy conditions. Monday’s forecast for the area near Aylesford, N.S., called for a high of 28 C — the average daily high in the region for October is normally below 15 C. “I can’t believe it — in October we normally get frost and cold,” Dave Corkum, mayor of the Municipality of the County of Kings, said in an interview. “There is some rain in the forecast in a few days and hopefully we will get it.” Despite the conditions, Corkum said there are no reports of damage to structures in the area.