The US Lumber Coalition urged the US Trade Representative to communicate to Canada and Mexico that the US-Mexico-Canada Agreement binational panel review system needs to be scrapped during the USMCA review process. The review system… can challenge actions taken to stop the unfair trade using this special dispute settlement panel process. The panel review gives powers to international tribunals that the Constitution reserves for US courts. …Canada, in a recent submission, argued that USMCA binational panel review replaces not only review by the US Court of International Trade (CIT), but also appellate review by the US Court of Appeals for the Federal Circuit (CAFC), effectively arguing that a USMCA panel does not need to concern itself with any US Appeals Court decisions or precedents. “The idea that a USMCA binational panel is not bound by a US Court of Appeals precedent is, quite frankly, outrageous,” stated Zoltan van Heyningen.
Canada has “no intention” of pursuing a free trade deal with China, Prime Minister Carney said, after US President Trump threatened to slap punitive tariffs on Ottawa. Carney said that the country respects its obligations under the Canada-US-Mexico trade agreement, known as CUSMA in Canada and the USMCA in the US, and will not pursue a free trade agreement without notifying the other two parties. Carney’s remarks come after Trump threatened to put a 100% tariff on Canadian exports if Ottawa “makes a deal” with Beijing. …Treasury Secretary Scott Bessent also echoed Trump’s sentiments on Canada and China, saying that the UScould not “let Canada become an opening that the Chinese pour their cheap goods into the US.” …Carney said: “What we have done with China is to rectify some issues that have developed in the last couple of years,” adding that the deal was “entirely consistent with CUSMA.”
The Nova Scotia government is defending itself after three other provinces levelled accusations that it is being secretive and undermining Canada’s fight against the United States over softwood lumber. Nova Scotia is urging the US Department of Commerce to reject requests from Quebec, Alberta and Ontario for the Atlantic province to provide much greater detail on how it calculates fees charged for harvesting timber. …Nova Scotia asserts that it should not be blamed for its surveys of private timberland owners that could result in higher fees for cutting down trees when compared with other provinces. The US has levied countervailing duties, arguing that other provinces have tree-harvesting fees that are too low when compared with Nova Scotia, which is exempt from US lumber duties. …Lawyers for Quebec, Alberta and Ontario urged the Commerce Department to make inquiries, saying the US should even consider abandoning the private surveys as a benchmark. [to access the full story a Globe & Mail subscription is required]
VIETNAM — The United States has decided to postpone the tariff increase on certain finished wood products, including upholstered chairs, kitchen cabinets, and bathroom cabinets, from January 1, 2026, to January 1, 2027. The postponement of the tax increase on some finished wood products helps Vietnamese businesses temporarily avoid the policy shock at the beginning of 2026. However, this is not a sign of loosening, but rather a tactical retreat, requiring the wood industry to be more proactive and cautious in policy planning and restructuring the overall development strategy of the entire industry. …Mr. Ngo Sy Hoai, Vice President of the Vietnam Wood and Forest Products Association (VIFOREST), commented that if postponing the tariff increase is considered an “opportunity,” then extreme caution is needed. In reality, tariff pressure has spread throughout the entire supply chain, from domestic manufacturers to importers and retail systems in the US.
ALEXANDRIA, Va.
ATLANTA — A proposed amendment to the Georgia Constitution would end sales taxes on timber, a major industry battered by mill closings and storms. House Majority Leader Chuck Efstration said a bipartisan group of legislators want to help protect “a cornerstone of the state’s rural economy.” “The timber tax cut is necessary because Georgia timber farmers are facing severe economic hardship following the closure of multiple sawmills in Georgia and significant losses in the aftermath of Hurricane Helene,” said Efstration, R-Mulberry, the sponsor of House Resolution 1000. “Georgia is a national leader in forestry, and I want to help this state’s rural economy and the livelihood of many Georgians.” Georgia’s forestry industry was the largest in the nation in 2021 based on harvest volume and product export values of nearly $4 billion, according to a report by the Georgia Forestry Association. But timber producers have suffered in recent years. 
In October, single-family building permits weakened, reflecting continued caution among builders amid affordability constraints and financing challenges. In contrast, multifamily permit activity remained steady and continued to perform relatively well. Together, these trends suggest that while demand for new housing persists, builders are adjusting residential construction activity in response to evolving market conditions. Because permits typically precede construction starts, these patterns offer insight into the near-term outlook for residential building activity. Over the first ten months of 2025, the number of single-family permits issued nationwide reached 787,122. On a year-over-year basis, this represents a 7.0 percent decline compared with the October 2024 year-to-date total of 846,446. Multifamily permitting activity was stronger, with 426,352 permits issued nationwide, marking a 5.7 percent increase from the same period last year.
Global markets plunged Tuesday after President Trump reignited fears of a US trade war with the European Union, America’s largest trading partner. The president showed no signs of backing off his threat from Saturday to hit seven EU countries and the United Kingdom with new tariffs unless they supported his push for American control of Greenland. Asked if he would be willing to use force to seize the semi-autonomous Danish territory, Trump replied, “No comment,” on Monday. The S&P 500 sold off by around 1.3% in early trading, while the Nasdaq Composite plunged 1.7%. The Dow Jones Industrial Average dropped more than 600 points. The S&P 500 has erased its gains for the year so far. Investors also sold off U.S. government bonds, driving up interest rates. Rising returns on US treasuries usually translate into higher mortgage rates and interest on new personal loans.
Southern Pine lumber exports (treated and untreated) are almost equal to 2024 year to date through October 2025 at 488 MMBF, according to October 2025 data from the USDA’s Foreign Agriculture Services’ Global Agricultural Trade System. October 2025’s 60 MMBF of exports were up 47% over October 2024 and up 33% compared to September 2025. When looking at the report by dollar value, Southern Pine exports are up 4% YTD ($190 million) compared to 2024. Meanwhile, the October value of $25 million is the highest mark since June 2022, when the value hit $29 million. Mexico leads the way YTD 2025 at $56 million, followed by the Dominican Republic at $39 million, and India at $18 million. Treated lumber exports, meanwhile, are down 4% through the first 10 months of the year compared to 2024. The Leeward-Windward Islands market leads the way through October at $18 million, followed by Jamaica at $16 million, and Belize at $10 million. Softwood lumber imports are running 8% behind 2024 levels.
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On this episode of This is Oregon Podcast, we’re joined by Judith Sheine, Professor of Architecture and Director of Design of the TallWood Design Institute at the University of Oregon. She shares her work with helping mass timber become more accessible and discusses it potential to create affordable, sustainable housing. Sheine also discusses the challenges and opportunities in advancing mass timber development and what its future could look like for the Pacific Northwest and homeowners. This is part two of our conversation with Judith Sheine. Part one is titled: 
ST. LOUIS — What is the life cycle of a building? Each year, in the United States, new home construction accounts for 50 million tons of carbon emissions. The majority stem from harvesting, manufacturing and transporting building materials — from lumber and masonry to glass and tile to roofing and mechanical systems. But what happens at the end of the cycle? When a building is no longer inhabitable or needed, what happens to all the energy invested in those materials? “It’s demolished,” Hongxi Yin said. “It goes to the landfill.” Yin, an expert on sustainable construction, is the InCEES professor in advanced building systems and architectural design in the Sam Fox School of Design & Visual Arts at Washington University in St. Louis. Over the last decade, he has led a series of research studios exploring ways to improve building efficiency, supply chains and construction processes. 
Two conservation groups are suing the Trump administration, challenging a U.S. Department of Agriculture rule that strips public comment requirements from most national forest projects. In a federal 
Together, we have served as US Forest Service chiefs for both Republican and Democratic administrations. We know that forest management decisions never come without debate, opinions and — more often than not — disagreement. Each of us has had to strike the difficult balance between leaving some forests intact, while sustainably using others to benefit communities and economies. But regardless of who is in the White House, one thing has always remained true: Americans value their national forests, and they want to see them protected for the benefits they provide us, like clean air, water, abundant recreation opportunities and sustainable economies. …The current administration needs to know: Repealing the Roadless Area Conservation Rule would not be in the long-term interest of the American people, the National Forests or the communities they serve. Each of us has been faced with tough decisions. Keeping backcountry and healthy forests free of unnecessary roads was never one of them.
Drax launched its Biomass Tracker, a new digital tool that provides greater visibility into the journey our woody biomass takes through the company’s global supply chain. The interactive tool shows the countries and states where Drax sources its biomass, the types of fibre used in Drax’s own woody biomass, how it is transported, and the carbon associated with each stage of its journey to Drax Power Station or to third-party customers. It also includes data on independent sustainability certifications, helping to strengthen accountability across the sector. The Biomass Tracker uses quarterly real-world data presented through an interactive Sankey diagram, allowing users to explore each stage of the supply chain from fibre origin (for Drax-own pellets), pelletising to transport, storage and use. …The tool is available to access on 
U.S. forests have stored more carbon in the past two decades than at any time in the last century, an increase attributable to a mix of natural factors and human activity. To unravel the cause behind this spike, researchers used nationwide forest data to examine how six environmental factors may have contributed to the increase in carbon sequestered by forests. They found that natural forces such as increasing temperatures, shifting precipitation, and carbon fertilization are among the largest contributors to carbon gains, but human drivers, like letting forests get older and planting trees, are also becoming bigger factors. …this new analysis aims to help researchers better separate what portion of carbon held by forests is related to human action and which portion isn’t. …This work highlights the vast difference in the amount of carbon forests can absorb naturally versus when they are actively managed. 
One of the least visible workforce developments of 2025 — the departure of more than 20,000 employees from the U.S. Department of Agriculture — became public just before the week between Christmas and New Year’s, a period that typically draws limited public attention. According to payroll data reviewed by USDA’s Office of Inspector General, 20,300 employees left the department between mid-January and mid-June, reducing total staffing from roughly 110,300 employees. The departures occurred as USDA prepares to administer an estimated $234 billion in farm, food, nutrition, conservation, and rural development programs in fiscal year 2026. …Two agencies recorded the largest number of departures in absolute terms. The U.S. Forest Service and the Natural Resources and Conservation Service experienced the highest staffing losses across USDA agencies. The Forest Service, “which oversees millions of acres of federal land,” reported Politico, “lost 5,860 workers,” while NRCS lost 2,673 employees.
The Washington wood-products industry says timber harvests will spiral downward if lawmakers pass a bill championed by Lands Commissioner Dave Upthegrove. At Upthegrove’s request, legislators are considering authorizing the Department of Natural Resources to sell “ecosystem services,” possibly by delaying or canceling timber harvests. DNR officials say ecosystem services could be a new source of revenue as businesses buy carbon credits to “offset” their emissions. Carbon credits could add to the money rural counties and schools receive from timber sales, according to DNR. The timber industry, backed by the Washington State Association of Counties, argues its more likely ecosystem services would replace timber sales. Rural public services would get less money, Paul Jewell, the counties’ policy director, said. More importantly, rural counties will lose timber jobs, he said. “Sales of ecosystem services can’t replace those economic benefits,” he told the House Agriculture and Natural Resources Committee on Jan. 28.
Over the past year, a wave of high-profile development proposals — from oil fields and mining roads to timber projects — has reshaped a fast-moving debate, propelling Alaska into the center of the national conversation over how to balance energy production with conservation. These projects have revived long-running tensions over what the state’s public lands are for, and who they ultimately benefit. The federal government has long viewed Alaska as resource-rich, a posture that’s intensified under the Trump administration. After meeting Trump in 2018, Gov. Mike Dunleavy called Alaska “America’s natural resource warehouse.” But the last time Alaska figured this prominently in national energy and conservation debates was in the late 1970s, said Philip Wight, at the University of Alaska Fairbanks. What makes today’s landscape different, Wight said, is a unified federal government pushing multiple contentious development proposals at once, with fewer moderate Republicans willing to oppose them ….
A 34-year-old rule exempting some commercial logging projects on federal lands from environmental review is unlawful, a federal judge recently ruled. Judge Michael McShane in the U.S. District Court in Medford earlier this month struck down the exemption, and with it, reversed recent approvals for three commercial logging projects covering tens of thousands of acres in Fremont-Winema National Forest in southern Oregon. The decision is the result of a 2022 lawsuit brought against the U.S. Forest Service by regional conservation groups Oregon Wild, WildEarth Guardians and GO Alliance. Since 1992, the U.S. Forest Service has been able to bypass environmental reviews required by federal law for logging projects on federal land, if the logging is meant to “improve forest stand conditions,” habitat or prevent wildfires, without “significant effect” on the human environment.
New Mexico’s Forestry Division is concerned after thousands of trees died last year due to warm temperatures, drought conditions, and native insects. Victor Lucero, the forest health program coordinator, said in 2024, about 67,000 acres of trees died. Last year, that jumped to about 209,000 acres. Most of the damage is south of I-40, including parts of the Lincoln National Forest near Ruidoso and areas west of Socorro in the Gila National Forest. The main culprit is native bark beetles. Lucero explained that when it’s warm and dry, trees get stressed and weakened, giving off chemicals that attract the beetles. Once the beetles get under the bark, they tunnel in, cut off the tree’s ability to move water and nutrients, and bring in fungi, leading to the tree’s death over time.
The Minnesota Department of Natural Resources aerially surveyed more than 13.5 million acres last year, checking for forest damage across the state’s forestland. Its findings are included in the recently released 2025 Forest Health Annual Report. Brian Schwingle, forest health program coordinator, said the annual survey and report is important because it tracks trends and reveals what is impacting trees, allowing the managers to make decisions for healthier, more resilient forests. “The two biggest tree health stories in 2025 in Minnesota were the derecho, the big blowdown in Bemidji, and the three big wildfires in northeast Minnesota in May,” he said, noting prior spruce budworm damage helped fuel the fires. In July, a derecho damaged 11,600 acres in and around Bemidji. Derecho, a Spanish word for straight, is a widespread, straight-line windstorm associated with a band of fast-moving thunderstorms. They can leave serious damage in their wake.
Tribes in Wisconsin and beyond are opposing the Trump administration’s proposal to end protections for millions of acres of roadless areas on national forest land. …But Wisconsin Ojibwe tribes said the move was conducted without consultation and threatens natural resources they rely on, said Conrad St. John, chairman of the St. Croix Chippewa Indians of Wisconsin. “They want to log it for the mature timber… which is revenue-based to create money for big corporations,” St. John said. …In Wisconsin, roadless areas account for less than 5 percent of the national forest’s 1.5 million acres. But Dylan Bizhikiins Jennings said they make up a vital portion of the region’s national forests, saying the administration’s actions show disregard for tribal sovereignty and treaty rights. He’s director of public information for the Great Lakes Indian Fish and Wildlife Commission, which represents 11 tribes in Wisconsin, Michigan and Minnesota.
NEW YORK
UK energy company Drax’s ambitions of becoming a significant wood pellet supplier to Asia are in danger of faltering as Japanese policymakers wind back generous subsidies for the biomass sector. Japan is set to soon surpass the UK as the world’s largest wood pellet importer after a post-Fukushima push to diversify power sources that caused hundreds of plants to spring up that burn wood pellets, palm kernel shells — a palm oil byproduct — and other organic materials. But policymakers in Japan are pulling support for the controversial industry after realising the hurdles to bringing down fuel costs. Tokyo has already cut subsidies for new projects of more than 10 megawatts. “The real intention is quite simple: no new government support, phasing out. We don’t see any clear path of bringing down costs in the foreseeable future,” said one government official. “Existing projects might survive but no new projects are coming.”
Deposits $10.6 Billion CAD + Interest 2.6 Billion + FX Gain 0.5 Billion = Total $13.7 Billion
Canadian softwood lumber exporters are currently paying a combined duty deposit rate of 45.16% on lumber imported into the United States.