WASHINGTON—President-elect Donald Trump is planning to issue a broad memorandum that directs federal agencies to study trade policies and evaluate U.S. trade relationships with China and America’s continental neighbors—but stops short of imposing new tariffs on his first day in office, as many trading partners feared. The memo directs federal agencies to investigate and remedy persistent trade deficits and address unfair trade and currency policies by other nations. And it singles out China, Canada and Mexico for scrutiny, directing agencies to assess Beijing’s compliance with its 2020 trade deal with the U.S., as well as the status of the U.S.-Mexico-Canada Agreement, or USMCA, which is set for review in 2026. But the memo doesn’t, in itself, impose any new tariffs—a momentary relief for foreign capitals. Instead, the trade policy memo is an indication of debates still roiling the incoming administration over how to deliver on Trump’s campaign trail promises for across-the-board tariffs on imports. [to access the full story a WSJ subscription is required]
Related coverage in: the Globe and Mail: President-elect won’t impose new tariffs on first day
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.
Nicolas Schmitt, an economics professor at SFU, highlighted that the province’s economy has shifted from a goods-based to a service-driven model. He said this transition has made the economy more diversified and resilient. With key regions like Vancouver and the Okanagan Valley showing strong growth in service sectors, B.C. is well-positioned to withstand global economic uncertainties and to continue thriving. “This war might affect more interior B.C. than urban B.C. That is a potential problem for the interior. Where those lumber mines and all those goods are being exported. So that creates an urban rural divide.” In a statement provided by Kurt Niquidet president of the B.C. Lumber Trade Council, he said federal parties must collaborate to tackle the ongoing softwood lumber duties and the potential imposition of further tariffs. …While B.C.’s diversified economy offers resilience, the potential impacts on industries like lumber, especially in rural areas, require attention. 
Advisors on Trump’s incoming economic team are considering a gradual implementation of tariffs, increasing them incrementally each month. This approach is intended to strengthen their negotiating position while minimizing the risk of sudden inflation, according to sources familiar with the discussions. One concept involves a plan to raise tariffs by 2% to 5% per month, using executive powers granted under the International Emergency Economic Powers Act. The idea is still in its early stages and has not yet been formally presented to Trump, indicating that the strategy is in the initial phase of consideration. Trump has not yet approved of the plan. Supporters include Trump advisors Bessent, Haslett and Miran. [to access the full story a Bloomberg subscription is required]
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. 
A new lawsuit accuses Procter & Gamble of deceiving Charmin purchasers with misleading environmental claims, known as greenwashing, about how it sources its toilet paper. In a proposed class action on Thursday, eight consumers said Procter & Gamble obtains most wood pulp for Charmin from the Canadian boreal forest… through harmful logging practices such as clear cutting and burning. The consumers called this sourcing “completely at odds” with Procter & Gamble’s public commitment to protecting the environment, including its “Keep Forests as Forests” campaign and the “Protect-Grow-Restore” logo found on Charmin packages. The lawsuit called the display of logos from the Forest Stewardship Council and Rainforest Alliance misleading because Procter & Gamble uses little pulp from FSC-certified forests and the Rainforest Alliance no longer has a certification program. …The lawsuit… seeks restitution, compensatory damages and punitive damages for violations of consumer protection laws in 28 U.S. states and Washington, D.C.
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 mere threat of tariffs being tacked onto Canadian lumber imports in the U.S. is raising fears of panic buying that could roil lumber markets and prices. “A number of Canadian lumber companies are now advising customers that they will add 25% to lumber exports to the U.S. when the tariff is announced,” 
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.
As we close the 2024 chapter, we wanted to share a recap of the top stories from the SLB last year. As we continue to work towards our mission to make softwood lumber the building material of choice in the United States, we reflect on the impact the SLB and its funded programs made last year. 
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.
The 
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.”
President Donald Trump signed actions on the first day of his second term to pull the United States out of the Paris Agreement, an international climate change treaty in which nearly 200 countries agreed to work together to limit global warming. …Representatives from the US were leaders in the Paris Agreement negotiations. It was adopted by nearly 200 countries during the Obama administration in 2015. Trump announced his intent to pull the US out of the Paris Agreement in 2017, though it wasn’t formalized until November 4, 2020, a day after the presidential election that Biden ultimately won. On the first day of his term, Biden announced his intent to reenter the Paris Agreement. On the first day of Trump’s second term in January 2025, Trump ordered the withdrawal from the Paris Agreement again as he sought to increase US production of fossil fuels. …In the meantime, a leading United Nations climate change official reiterated “the door remains open to the Paris Agreement.”
USA BioEnergy (USABE) announced it has closed on the acquisition of 1,600+ acres of land in East Texas for its new $2.8-B advanced biorefinery, designed to convert wood waste into sustainable, net-zero aviation fuel (SAF). The landmark SAF facility already secured a 20-year offtake agreement with Southwest Airlines and is at the forefront of advancing ultra-low-carbon fuel, which is much needed in the future of aviation… Once blended with conventional jet fuel, the SAF could produce the equivalent of 2.59 billion gallons of net-zero fuel and avoid 30 million metric tons of CO2 over the offtake agreement term. According to USABE calculations this will enable approximately 112,000 short (less than three hours) or 7,000 long haul (more than 10 hours) net-zero airline flights per year.
Firefighters in southern California are battling the Palisades and Eaton Fires. …Residents of many fire-prone areas have grown familiar with the orange, apocalyptic haze of wildfire smoke as these blazes have become more common because of climate change. Such smoke can contain an unpredictable cocktail of chemicals associated with heart and lung diseases and even cancer, which is the leading cause of death among firefighters. Here’s what makes wildfire smoke so dangerous. When trees, shrubbery and other organic matter burn, they release carbon dioxide, water, heat—and, depending on the available fuel, various volatile compounds, gaseous pollutants and particulate matter. Those tiny particles, which become suspended in the air, can include soot (black carbon), metals, dust, and more. If they’re smaller than 2.5 microns in diameter, they can evade our body’s natural defenses when inhaled, penetrating deep into the lungs and triggering a wide variety of health problems.
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.”
Foreboding weather forecasts keep tensions high in Los Angeles as one of North America’s largest cities battles wildfires that have already claimed at least two dozen lives and thousands of homes. Here are some data points that put into context the peril the city is in. The most destructive fires in California history — and how they compare to Canada’s largest wildfire: Palisades and Eaton fires are already among the most destructive in California’s history, scorching more than 10,000 structures in just a matter of days. With persistent winds in the forecast, those numbers could climb even higher. For context, Canada’s most devastating wildfire — in Fort McMurray, Alta., in 2016—destroyed an estimated 2,400 structures.
Fires burning homes and businesses in Los Angeles for a week have killed at least 24 people, displaced thousands of others and destroyed more than 12,000 buildings in what might be the most expensive conflagrations in the nation’s history. The blazes started Jan. 7, fueled by fierce Santa Ana winds that have posed problems for the large forces of firefighters deployed across several areas of the sprawling city. Cal Fire reported that the Palisades, Eaton, Kenneth and Hurst fires have consumed about 63 square miles (163 square kilometers). Investigators are still trying to determine what sparked the fires. They could be the nation’s costliest ever.