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.
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.
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.”
The Canadian Lumber Trade Alliance (CLTA) issued the following statement. …Luc Theriault, President, Wood Products at Domtar and Co-Chair of the Canadian Lumber Trade Alliance, said “The U.S. government’s decision to impose a further 10% tariff – on top of existing duties of 35% – is disappointing. These measures unjustly punish Canadian producers, while also driving up costs for our neighbors in the US.” …“Canadian lumber does not pose a national security risk to the United States. Our industry directly supports 200,000 jobs and sustains over 300 forest-dependent communities across Canada. We will continue to work closely with the Government of Canada to defend against these unfortunate trade actions and to safeguard Canadian forestry jobs.” …In its recent Section 232 proclamation, the US signaled a willingness to pursue negotiations. The Canadian industry is ready to engage. It is essential that the Government of Canada match this commitment and play an active role in defending our industry.
Canada’s forest products sector strongly opposes the US administration’s decision to impose additional punitive tariffs not only on softwood lumber but also on derivative products, including furniture and kitchen cabinets. The targeting of Canada’s forestry products under Section 232 of the Trade Expansion Act is unjustified and disregards decades of evidence and cooperation that confirm Canadian forest products strengthen, rather than threaten, US national security. This broad action further undermines a deeply integrated North American supply chain that supports housing affordability, infrastructure, manufacturing, and shared prosperity and security on both sides of the border. …The new Section 232 tariffs pushes the total duty burden to over 45%. This compounds pressure, distorts markets, threatens jobs on both sides of the border, and escalates trade tensions. …This misguided move risks raising housing costs in the United States and undermines the integrated trade relationship that has provided jobs, investment, and prosperity in both countries,” said Nighbor.
President Trump on Monday ordered significant new tariffs on wood and various wooden products, including imported lumber, timber, kitchen cabinets and upholstered furniture – potentially adding costs to homebuilding and furnishing, which have surged in price in recent months. In a proclamation, Trump said the United States would begin charging a 10% tariff on foreign softwood lumber and timber, used in a wide variety of building materials. He also announced a 25% tariff on kitchen cabinets, vanities and upholstered wooden furniture. Those rates are set to go into effect October 14. On January 1, Trump will boost the tariff on cabinets to 50% and upholstered furniture to 30%. He first announced those new tariffs on Thursday. …“In my judgment, the actions in this proclamation will strengthen supply chains, bolster industrial resilience, create high-quality jobs, and increase domestic capacity utilization for wood products such that the US can fully satisfy domestic consumption while also creating economic benefits through increased exports,” Trump wrote.
WASHINGTON, D.C. — On Oct. 1, 2025, nine presidents and CEOs representing American manufacturers of hardwood plywood, engineered wood flooring, and hardwood veneer asked President Trump to add their products to the recently announced Section 232 tariffs on wood products. The current 232 tariff proposal focuses on cabinets, vanities, lumber, upholstered furniture, and other products. Section 232 tariffs are trade restrictions, such as import duties, that the President of the United States can impose on goods that are found to threaten national security. According to the group of companies, more than 100,000 American manufacturing jobs are threatened by the “flood of dumped and subsidized decorative hardwood product imports from outside of North America.” The group pointed to the news that Roseburg Forest Products had closed its last hardwood plywood mill and exited the hardwood plywood market as a result of these imports, which the company said dominate 80% of the U.S. market.
Much of the federal government shutdown in the early hours of Oct. 1 after federal lawmakers failed to reach a funding deal. If the shutdown persists, work related to federal data reporting, rulemakings and other regulatory initiatives could face delays. Ahead of the shutdown, many federal agencies published contingency plans on how work at those agencies may be impacted in the short term. …The USDA is expected to furlough 42,256 of its 85,907 employees, equating to more than 49% of the agency’s workforce. Data products and website updates offered by the USDA’s National Agricultural Statistics Service and Foreign Agricultural Service are among agency activities that are expected to cease during the funding lapse. …FAS also publishes a variety of data of interest to bioenergy producers, including monthly export data on ethanol, distillers grains, biodiesel and wood pellets. FAS also publishes reports that provide insight on foreign markets for biofuels and wood pellets. 
The Trump administration on Monday announced tariffs on imported wood products, targeting softwood lumber, timber, kitchen cabinets, vanities and upholstered furniture. …Trump’s proclamation said wood product imports were weakening the US economy, resulting in a persistent threat to the US supply chains and harming the domestic wood industry. “Because of the state of the United States wood industry, the US may be unable to meet demands for wood products that are crucial to the national defense and critical infrastructure,” the proclamation said. …Critics of the tariffs have voiced concern that the new duties will inflate costs for American consumers and builders. Former US Rep. Matt Cartwright, (D-Pennsylvania), said safety will suffer as a result of the new tariff on imports of trucks. …“A lot of these companies are already on shoestring budgets, and unfortunately the first thing that gets cut when costs go up is safety,” Cartwright said.
NEW ZEALAND — News that US President Trump imposed a tariff of 10 percent on imported timber has come as a relief to industry, which expected a higher figure. Mark Ross, chief executive of the Wood Processors and Manufacturers Association, said it was a relief as they thought it would be higher. “We’ve been working through the essential impact of a tariff on our products since March this year so it wasn’t a shock because we were, at one point, expecting a 50% tariff. “So 10% is a bit of relief. It is still going to have a financial impact on the wood processing industry in New Zealand. …Ross said they were working with exporters to work out how to handle the extra costs. …Ross said the United States was New Zealand’s third-largest export market and continued to grow.
The Commerce Department in a shutdown contingency plan released Monday said it will continue “the necessary work to address the effect of imported articles on national security.” The contingency guidelines mark a subtle shift from the previous plan, which said investigations would continue with unexpired funds if Congress failed to approve additional spending by the end of the fiscal year on Sept. 30. By claiming a national security rationale for the investigations, the administration can continue work on probes being conducted under Section 232 of the Trade Expansion Act. That provision allows for the imposition of tariffs on goods deemed critical to national security. …Section 232 investigations could take on even greater weight if the Supreme Court strikes down Trump’s use of the International Emergency Economic Powers Act. [to access the full story a Bloomberg subscription is required]
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%.
It’s hard to find anything good to say about Canadian forestry stocks right now. Some of the biggest names in the sector have been on a downward slide for the past three years. … But the onslaught of grim news has highlighted some bargains. …Okay, the definition of attractive rests on an assumption that risk-averse investors might not want to embrace just yet: Despite Mr. Trump’s bluster, the US still needs Canadian lumber in a big way to feed its lumber-intensive home construction industry. Says who? The National Association of Home Builders, for one. …Some analysts believe that US forestry companies will struggle to replace Canadian softwood. Ben Isaacson, at Bank of Nova Scotia, estimates that US producers would have to build 50 new mills to become fully independent of Canadian lumber. Just two companies build the specialized equipment required in mills. They would struggle to supply even two mills a year. [to access the full story a Globe & Mail subscription is required]
The softwood lumber trade dispute between the US and Canada, which has led to ever-higher US import duties on Canadian lumber, has lasted for decades. …Canadian lumber has the backing NAHB, which sees lumber tariffs as exacerbating high costs for builders and worsening the US housing affordability crisis. There is currently a “Wall of Wood” in the US, after Canadian producers increased shipments to the US in anticipation of the hike to existing ADD and CVD duties in August. Expectations that a large increase in duties would force the closure of Canadian sawmills, lead to shortages, and a boost in lumber prices, overlooked the current weak US demand for lumber, according to Matt Layman. …As US homebuilders now face additional tariff-driven costs, including a 50% tariff on cabinets and vanities, it’s hard to see the lumber demand situation improving, even if more Canadian suppliers have to curtail production or close sawmills.
The Trump administration’s latest tariffs on housing materials could raise the average cost of building a single-family home by nearly $9,000, according to a report Tuesday from UBS. Research analyst John Lovallo said the new levies include “an incremental 10% Section 232 tariff on softwood timber and lumber imports, as well as 25% levies on kitchen cabinets, vanities and upholstered wood products.” UBS estimates the lumber tariff will add about $720 per home, while cabinet and vanity tariffs could tack on another $280. Upholstered wood products were not included in the calculation because they are generally purchased by homeowners rather than builders. “As a result, we now estimate the total tariff impact on the cost to construct an average home at approximately $8.9K,” Lovallo wrote. …“Importantly, we continue to believe this cost impact will be spread throughout the entire housing value chain, with the builders perhaps best positioned to push back on suppliers,” he said.
President Trump ordered fresh tariffs on softwood timber, lumber, and wood furnishings, even as housing groups warn the move could drive up construction costs and furniture-industry advocates said the levies would lead to US job losses. The tariffs may, however, prove more legally durable than Trump’s reciprocal country-by-country penalties because they fall under Section 232 of the Trade Expansion Act, the same legal tool the White House has used to justify duties on steel and aluminum. …The measures hit Canada especially hard because the country already faces duties of more than 35%, a result of recent but separate trade initiatives. Publicly traded lumber producers most directly exposed include Canada’s West Fraser Timber, Canfor, and Interfor. In the US, Weyerhaeuser, Boise Cascade, and Louisiana-Pacific are the closest listed peers, with stocks prices that often move in step with lumber tariffs and demand. US-based furniture retailers may also experience pain, with many dependent on foreign wood.
President Donald Trump has reignited debate over the nation’s housing shortage, calling on Fannie Mae and Freddie Mac to spur a wave of new home construction. Trump accused large homebuilders of “sitting on 2 million empty lots, a record,” and likened their behavior to OPEC’s control of oil prices. …“I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!” The president’s comments come as housing inventory has rebounded from historic lows in 2022, but builders continue to face limited incentives to ramp up construction. …Since taking office, Trump has made housing a central policy focus, including an executive order for emergency price relief and a campaign to pressure the Federal Reserve for lower rates. …Despite Trump’s calls, the mechanics of how Fannie and Freddie might spur more homebuilding remain unclear. 
The September monthly update from the Softwood Lumber Board includes these headlines and more:
Washington, D.C. – When most people think of ironworkers, mass timber is not the first thing that comes to mind. But that perception is changing fast. The International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers (Iron Workers), is proving that ironworkers are not only part of the mass timber conversation, but they are the best equipped trade to erect these projects. From landmark projects like the Walmart Headquarters in Arkansas, erected by Iron Workers’ signatory contractor Foust Fab & Erectors, to countless hybrid timber-and-steel structures across the United States and Canada, ironworkers are quietly setting the standard for mass timber erection. Ironworkers have proven that their structural steel expertise, efficiency, and safety culture make them the #1 choice for this growing market. …Our mass timber training is in partnership with WoodWorks, and therefore, third-party validated,” said Iron Workers Executive Director of Apprenticeship and Training James Owens. 
FORT MILL, South Carolina — In a major stride towards its ambitious 2030 sustainability strategy, Domtar released its sustainability report. The report, entitled 
US civil society groups are urging the European Commission to resist Washington’s pressure to delay the EU’s deforestation regulation (EUDR) or tweak the rules to grant the country preferential treatment, according to a letter seen by Euractiv. The missive, sent this morning to Commission President Ursula von der Leyen and the Commissioners responsible for green rules, the economy and trade, warns against any backtracking. “We are particularly concerned by the Commission’s apparent willingness to offer the U.S. special treatment under the EUDR as part of ongoing EU-U.S. trade negotiations,” the letter reads. The organisations refer to the joint statement issued by Brussels and Washington in September, which labels the US as posing “negligible risk to global deforestation.” Rick Jacobsen, senior manager for commodities policy at the US NGO Environmental Investigation Agency, told Euractiv that US interests have “ramped up the pressure campaign” to weaken the law before it even comes into force.
ATLANTA — Forest Stewardship Council US announced the approval of the revised 
Despite the Trump administration’s pledge to aggressively clear overgrowth from national forests, the U.S. Forest Service is falling significantly short on wildfire mitigation work. By mid-September, the agency had only treated about 2.2 million acres through thinning and prescribed burns. That’s far short of the over 4 million acres treated during the last year of the Biden administration, and it’s also behind the agency’s annual average over the past decade. Forest Service Chief Tom Schultz blamed “operational challenges” and said agency resources were diverted to help battle blazes in Canada. However, Senator Ron Wyden of Oregon is blaming the slowdown in fuel treatments on the Trump administration firing thousands of Forest Service employees earlier this year. …the government shutdown has stopped wildfire prevention efforts across the country’s entire 193 million acres of national forest land [at] the ideal time for the agency to conduct safe prescribed burns across the West.
Roughly 500 years ago in California’s High Sierra, pine cones dropped to the ground and a cycle began. …Half a millennia later, US Forest Service scientists began testing strategies to save these now ancient and massive trees in the little-known area east of Fresno called the Teakettle Experimental Forest. They had plans to light a huge prescribed burn to clear overgrowth next year. But then the Garnet Fire ignited and scorched all 3,000 federally protected acres on its path through the Sierra National Forest. …Scott Scherbinski, a biologist at the Climate & Wildfire Institute, said “It will be a start-over event for this forest.” …Malcolm North, a Forest Service ecologist said…fires with less intensity can be beneficial in California’s fire-adapted landscapes, but the Garnet Fire, when it burned through in September, may have killed most trees and sterilized the ground — making it unlikely the forest can rebound without intervention. [to access the full story a San Francisco Chronicle subscription is required]
Drought and insects have killed an unprecedented number of Oregon’s Douglas fir trees during the last decade, costing billions in timber value, damaging infrastructure and ramping up wildfire danger. Beginning in 2015 and accelerating with the 2021 heat dome, roughly 635,000 acres of forest have been impacted by what’s known as Douglas fir “dieback” in southwest Oregon and the Willamette Valley. “It’s hitting trees of all sizes, but it’s hitting larger and older trees the hardest,” Max Bennett, a retired forest researcher with Oregon State University, told members of the Oregon Legislature on Sept. 30. “What we’re seeing now is unprecedented.” The dieback has led to $1.1 billion in lost timber value, $500 million in potential road hazard costs and created a tinderbox of forest fuel capable of spawning the West’s most destructive wildfires, a group of foresters and researchers told the House Committee on Agriculture, Land Use, Natural Resources and Water.
A coalition of conservation groups’ attempt to stop a forest project in Montana’s Bitterroot National Forest fell flat on Tuesday when a magistrate judge recommended the court toss their claims. In her findings and recommendations, U.S. Magistrate Judge Kathleen DeSoto noted inconsistencies in the conservation groups’ arguments across different filings, leading to many of their claims being waived. “Therefore, defendants argue, plaintiffs have conceded these issues,” DeSoto wrote. “Defendants further point out that several of plaintiffs’ arguments are raised for the first time on reply.” The groups challenged the planned Mud Creek Vegetation Management Project, claiming it violates multiple federal conservation acts by failing to provide exact details of where logging and burning will take place, as well as what effects it will have on the environment. The project will include logging, thinning, controlled burns and road construction on 48,000 acres of federal forest. It is intended to mitigate wildfire risk.
Last April, a pair of teenage boys … set fire to wooden pallets someone had dumped in the woods. Within a few hours it became one of the fastest-moving and most destructive wildfires on record in the New Jersey Pinelands. By the time it was brought under control three weeks later, about 15,000 acres of preserved forest were destroyed, and thousands of people were forced to flee their homes and businesses. Most official accounts of what became known as the Jones Road Fire attribute its ferocious power to the intensifying cycles of drought and heat linked to climate change that continue to affect coastal areas. But forestry experts in New Jersey point to another cause. …On Sept. 18, the New Jersey Pinelands Commission took a big step toward more aggressive management of the state’s Pinelands National Preserve voting to thin out a 12,000-acre stretch of pine and oak woodland adjacent to the wildfire site.
Given market sentiment and operating rates, in addition to recent mill closures and curtailments, how has demand for wood fiber changed recently and over the past 10 years? …Total capacity of the wood-using U.S. pulp and paper sector declined 18% in the past 10 years. This decline is specific to wood-using mills, excluding facilities that rely exclusively on recycled fiber, but the sector reported drops in all end uses, with reductions in printing and writing capacity falling 49%. This represented over half of the lost capacity nationwide. Newsprint, household/sanitary, and market pulp segments also had notable declines, each representing 10%-16% of the lost capacity. Regionally, capacity reductions in the U.S. South accounted for most of the volume lost (64%), with the U.S. West and North each representing 18%. The West experienced the largest and most severe drop in capacity for a given region, with pulp and paper mill closures and reductions decreasing capacity by 26%.
WASHINGTON — The US Supreme Court on Monday declined to hear a high-profile challenge to Washington’s Climate Commitment Act, marking yet another victory for the state’s keystone climate policy. The lawsuit started with the private operator of a natural gas power plant in Grays Harbor County. The plant is required to buy pollution allowances to pay for the many tons of greenhouse gasses it emits into the atmosphere under the 2021 “Cap and Invest” law. The plant’s owner, Chicago-based Invenergy, sued Laura Watson, then-head of Washington’s Department of Ecology, in late 2022, arguing that the state’s carbon market is unconstitutional. The lawsuit claimed that the state law discriminated against privately operated natural gas plants. In 2023, US District Court Judge Benjamin Settle dismissed the case. The company appealed. …The Supreme Court on Monday denied Invenergy’s petition outright. The justices did not publish any written justification for their decision.