VANCOUVER — David Eby appears to be ready to put B.C. on a trade war footing in response to American tariff threats, with an arsenal that includes supporting federal taxes and bans on exports, like critical minerals, and bolstering B.C.’s energy and resource sector to make it more competitive by accelerating permitting for energy and resource projects, and reforming government programs like BC Timber Sales. No industry in Canada understands the negative impact of American duties and tariffs better than the B.C. forestry sector, which has been labouring under American duties on softwood lumber for nearly a decade now. Eby said he would encourage the Canadian government to respond to the tariffs with taxes and bans on key exports.
B.C. forestry companies already pay an average of 14.4% in duties on lumber exports to the U.S., and they could double next year. It’s unclear whether the 25 per cent tariffs Trump has threatened would be additive to existing duties. …Forestry companies in B.C. face an even stiffer tariff of sorts right here at home, in the form of regulatory burdens, including policies that have restricted access to timber, and stumpage charges that can make the available timber uneconomic to cut. …He suggested some relief may be on the way for resource industries in B.C. …One key reform will be to BC Timber Sales. Eby has struck a new task force with the mandate of overhauling it.
BC Timber Sales accounts for about 20% of the timber harvested from Crown lands, and uses auctioning to establish market pricing in order to set the rates (stumpage) charged to forestry companies to harvest timber on Crown lands. Forestry companies have complained that the rates are often too high, not responsive enough to lumber price swings, and can make it uneconomic to harvest timber, even when it is available for harvest. …“The elaborate process that we go through with B.C. Timber Sales in order to appease the Americans on softwood lumber duties has absolutely not done that,” he said. “The tariffs continue, the tariffs. …“Obviously, now, in the context of 25% across-the-board tariffs – we are in a trade war with the United States – that anxiety goes away.”
BC could face severe economic consequences from president-elect Donald Trump’s proposed 25% tariff on Canadian imports. The province projects a cumulative economic loss of $69 billion over four years, with real GDP potentially declining by 0.6% annually in 2025 and 2026. The BC. Ministry of Finance, estimates significant job losses and revenue reductions during this period, with the unemployment rate possibly increasing to 6.7% in 2025 and 7.1% in 2026. The tariff’s effects on the labor market could result in 124,000 job losses by 2028, with the most affected sectors being natural resources, manufacturing, transportation, and retail. Corporate profits could decrease annually by $3.6 billion to $6.1 billion. …Experts indicate that the tariffs could disrupt the US lumber supply chain. Rajan Parajuli, an NC State University professor, said that… US lumber producers might profit from higher prices, consumers would face increased costs if demand remains steady. The Peterson Institute for International Economics notes that these tariffs could extend beyond Canada, impacting the broader wood product sector.
It may take months, if not years, to rebuild after the wildfires in Southern California, raising the likelihood of a spike in demand for lumber in the months and years ahead. The rebuilding process after events such as these “typically drives a significant demand for building materials, particularly lumber, given its foundational role in construction,” said Michael Goodman, of building-materials wholesaler Sherwood Lumber. The California wildfires could slow the economy and boost inflation – and that’s not even the worst of it, economists say. …Looking at the bigger picture for the lumber market, Kuta said, “if one believes that interest rates will gradually moderate lower, we as a nation [would still be] woefully underbuilt and in need of new residential housing.” Among the companies to consider are lumber providers Canfor Corp. and West Fraser Timber Co. and timberland company Weyerhaeuser Co., well as building-material suppliers Builders FirstSource Inc. and Boise Cascade Co. 
Lumber prices remained above $590 per thousand board feet in January, hovering at eight-week highs as robust demand for building materials in the US compounded with dovish expectations for Federal Reserve policy. U.S. housing starts in December surged 15.8% from the previous month to a seasonally adjusted annual rate of 1.499 million units, the highest since February 2024 and well above market expectations of 1.32 million. Although building permits fell 0.7% to 1.483 million units, they exceeded forecasts of 1.46 million. At the same time, easing core inflation from the latest CPI report reinforced expectations of Federal Reserve rate cuts by mid-year, while mortgage applications jumped 33.3%, marking the largest weekly increase since 2020, as buyers sought to lock in borrowing costs despite rates exceeding 7%. Additionally, U.S. buyers stockpiled inventory ahead of a proposed 25% tariff on Canadian softwood lumber, while existing 14.4% duties further constrained supply. [END]
Lumber prices surged to around $580 per thousand board feet in January, marking a six-week high, as uncertainty surrounding potential tariffs on Canadian softwood lumber imports to the U.S. stoked panic buying. The looming 25% tariff proposed by President-elect Trump has prompted U.S. buyers to rapidly secure inventories ahead of anticipated price hikes, further escalating demand. With Canadian lumber already subject to an average 14.4% import duty, the additional tariff is expected to push prices even higher. U.S. reliance on Canadian softwood lumber remains substantial, as Canada supplies a significant portion of the country’s lumber needs. While alternative suppliers, such as Germany and Sweden, may partially fill the gap, they lack the capacity to match Canada’s production in the long run. Meanwhile, domestic challenges, including workforce shortages and sawmill closures, are limiting U.S. production, contributing to ongoing supply constraints. [END]
The NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 68 for the fourth quarter of 2024, up five points compared to the previous quarter. Remodelers are more optimistic about the market than they were earlier in the year, corroborated by NAHB’s recent analysis of home improvement loan applications. Demand in many parts of the country was stronger than usual for the fall season, especially demand for larger projects, with leads coming in after the uncertainty about the November elections was removed. …The Current Conditions Index averaged 75, increasing three points from the previous quarter. All three components remained well above 50 in positive territory: large remodeling projects rose eight points to 75, moderate remodeling projects increased two points to 73, and small remodeling projects inched down one point to 76. …The Future Indicators Index was 61, up six points from the previous quarter. 
A report released by the Commerce Department on Friday showed new residential construction in the U.S. surged by much more than anticipated in the month of December. The Commerce Department said housing starts soared by 15.8 percent to an annual rate of 1.499 million in December after tumbling by 3.7 percent to a revised rate of 1.294 million in November. …The spike by housing starts came amid a substantial rebound by multi-family starts, which skyrocketed by 61.5 percent to an annual rate of 449,000 in December after plummeting by 30.7 percent to an annual rate of 278,000 in November. Single-family starts also shot up by 3.3 percent to an annual rate of 1.050 million in December after surging by 7.7 percent to an annual rate of 1.016 million in November. Meanwhile, the report said building permits slid by 0.7 percent to an annual rate of 1.483 million in December after surging by 5.2 percent to a revised rate of 1.493 million in November.
The massive fire that began in Pacific Palisades on January 7 has kept the city on edge ever since, with multiple other outbreaks flaring up around L.A. in the following days. While many have been contained or extinguished, the devastation left in the fire’s wake is astonishing, with homes reduced to ashes. In light of this reality, one question remains: why is wood the primary choice for construction in an area so prone to wildfires? The U.S. is rich in forests making wood a readily available material. [Wood is] more affordable, with lower prices than other materials like steel or concrete. …The tradition of building with wood in the United States dates back to the arrival of European settlers… Wood allows for faster construction, making it an attractive choice for building homes. …However, the increasing frequency and intensity of wildfires may serve as a wake-up call, prompting a shift to fireproof materials like concrete.
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As California residents grapple for answers in the wake of a massive firestorm event in which two major blazes ravaged parts of Los Angeles — the Palisades Fire and the Eaton Fire —power lines are once again at the center of debate. It’s no wonder. Failed electric equipment and poor maintenance have caused horrific blazes in recent years, sometimes sparked by the smallest of parts, according to government investigators. …The 2023 fire in Maui that killed 102 people was caused by “reenergization” of broken power lines during high winds that showered sparks into dense, dry vegetation. …One key but often unpopular tool for preventing deadly wildfires is shutting off power when high winds of certain velocities are forecast. …Undergrounding power lines is the single best method to avoid dangerous arcing of overhead wires, or having dry palm frond hit one that can spark or spread fires. It’s also by far the most costly
WASHINGTON – Today, U.S. Secretary of Commerce Gina Raimondo announced the Department’s Economic Development Administration (EDA) is investing $6.2 million in the state of Kansas to support forestry and construction industry workforce development. The EDA forestry investments announced today are: Kansas State University in Manhattan will receive a $3.2 million grant to bolster natural resource and wildfire risk management workforce development through construction of a modernized training facility. This EDA investment will be matched with $815,794 in local funds. …“The Biden-Harris Administration’s Investing in America agenda is growing jobs, building a sustainable workforce, and creating opportunities for workers across the country,” said Secretary of Commerce Gina Raimondo. “These EDA investments in Manhattan and Beloit will provide expanded forestry and construction workforce training programs so local workers get the skills they need for in-demand jobs, and the local economy grows.”
PACIFIC PALISADES, California − Firefighters were progressing in their battle against two massive wildfires as winds eased early Thursday, bringing a respite to frustrated and beleaguered residents across Los Angeles County who have been on edge for over a week. All “particularly dangerous situation” red flag warnings largely expired by Wednesday night without causing any significant fire growth, according to the National Weather Service. But dry conditions and locally gusty winds were forecast to linger into Thursday − particularly in the mountains, the weather service warned. According to the weather services, temperatures were also expected to drop five to 10 degrees below normal for the remainder of the week, and Friday is predicted to be the coldest. “Good news,” the weather service’s Los Angeles office said. “Bad News: Next week is a concern. While confident that we will NOT see a repeat of last week, dangerous fire weather conditions are expected.”
