Mark Carney
Prime Minister Carney says any future trade deal with the US could include “some element of managed trade,” including quotas, on softwood lumber exports. Carney’s comments come after B.C. Premier David Eby said that the federal government has been speaking with the provinces about quotas to resolve the softwood lumber dispute. Carney added that resolving the conflict is a “top priority” as the US prepares to double various duties to 34.45%. Canada and the US have been without a softwood lumber agreement since 2015, and Eby has previously said that resolving the dispute could “build momentum” for a larger trade deal. US President Trump’s latest threat is to impose 35% tariffs by Aug. 1 on Canadian goods currently not compliant with the US-Mexico-Canada Agreement. Carney says he agrees with Eby’s idea of resolving the lumber dispute as part of a larger trade deal, but notes that both issues are unfolding along different times lines.
Related coverage in: Business in Vancouver: Carney confirms possibility of lumber quotas in trade deal with US
Prime Minister Carney says securing a truce in the long-running Canada-US lumber dispute is a top priority as Canadian producers brace for even heftier US levies as early as September. …Mr. Carney declined to say what level of baseline tariff Ottawa would accept in a new trade and security pact with Washington. …Mr. Carney was asked whether Canada would impose tariffs on US products if the US keeps a baseline levy on Canadian goods. “We’ll see what the final agreement is, if there is an agreement,” he said. …Historically, Mr. Carney said lumber deals with the US contain “some element of managed trade” such as quotas on Canadian shipments to the US. …Mr. Pellerin, a former Canadian government softwood litigator, said he thinks it would be unwise to strike a deal before litigation related to the softwood dispute plays out. There are several challenges of US duties on softwood proceeding under the United States-Mexico-Canada Agreement dispute mechanism. [This story is for Globe and Mail subscribers only]
Canada is open to considering limits on softwood lumber exports to the U.S. to try to ease some trade friction between the neighboring countries, British Columbia Premier David Eby told Bloomberg News in a report published on Wednesday. “One of the asks for years out of the American coalition has been a quota — that there’s a fixed amount of lumber that gets to come from Canada,” Eby told Bloomberg News. “And I think that, for the first time, there’s some willingness to have a conversation about what that could look like.” [to access the full story, a Reuters or Bloomberg Economics subscription is required]
The Vancouver Fraser Port Authority is now searching for a construction company to plan and build the Roberts Bank Terminal 2 container port project wharf and landside facilities. The port said the state-of-the-art marine container terminal will unlock over $100 billion in new trade capacity and contributing $3 billion in GDP annually. …Construction is planned to begin in 2028, and the terminal is expected to be in operation by the mid-2030s. …The port authority has signed mutual benefits agreements with 27 First Nations. …Following the federal and provincial governments’ 2023 approval of the project, the port authority submitted a Species at Risk Act-compliant Fisheries Act authorization application in 2024. A decision on that, the final major permit, is expected no later than October 2026, the port authority said. …Pang said the terminal will be a catalyst for economic transformation nationally. He said it aims to support Prairie grain exports and BC’s forestry sector.
TERRACE BAY, Ontario — AV Terrace Bay has been convicted on two charges: Failing to control the quality of discharged effluent to ensure that acute toxicity tests resulted in no more than a 50% mortality rate for the test organisms; and Failing to comply with an industry standard by discharging Total Reduced Sulphur compounds. …AV Terrace Bay was convicted of two violations under the Environmental Protection Act, fined $525,000 plus a victim fine surcharge of $131,250, and given 12 months to pay. …Due to financial constraints and market conditions, the mill has been in a warm idle state and has not been producing product or revenue since at least January 2024. The mill generates industrial effluent that undergoes primary and secondary treatment prior to discharging to Lake Superior via Blackbird Creek. …On May 1, 2023, 100% of the Rainbow Trout died during an acute lethality test performed on a grab sample of the mill’s final effluent.
Investigators at UK-based non-profit, Earthsight, have uncovered a booming trade in illegal Russian timber stretching throughout Europe and breaching war sanctions. The investigation ‘
Lumber futures traded above $650 per thousand board feet, hovering near April highs driven by tightening US sawmill output and dwindling import volumes, both of which are near their lowest levels in half a decade. Domestic production in the first quarter slipped year-on-year, and imports, including softwood lumber from Canada, have contracted sharply, leaving US framing material availability at its leanest since 2019. At the same time, builders are contending with looming tariff hikes that could push duties on Canadian lumber from roughly 14.5% today toward the mid-30s, adding several thousand dollars to the cost of new homes. Although a modest pull-back in construction activity has softened recent gains, overall demand remains sufficient to absorb current supply, and without a rapid expansion in US mill capacity or alternative sourcing, these supply constraints, compounded by rising trade barriers, are likely to sustain upward pressure on lumber prices in the months ahead.
OTTAWA — Canada’s annual inflation rate rose to 1.9% in June, meeting analysts’ expectations, as increases in the price of automobiles and clothing and footwear pushed the index higher, data showed on Tuesday. The consumer price index was at 1.7% in the prior month. Statistics Canada said on a monthly basis the CPI increased 0.1%, matching analysts’ forecasts. It is for the third month in a row that the CPI has been under 2%, or the mid-point of Bank of Canada’s inflation target range. This is the last major economic indicator to be released before the Bank of Canada’s rates decision later this month. The slight rise in prices across many segments, along with a strong jobs number last week, is likely to take away any incentive to cut interest rates, economists had earlier predicted. …Shelter prices rose by 2.9%, its first drop below 3% in more than four years.
President Trump announced his team struck a trade deal with Indonesia on Tuesday and said details would be forthcoming. …The announcement comes after Trump unveiled a new batch of letters to over 20 trade partners outlining tariffs on goods imported from their countries beginning in August. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil. …Trump has also escalated tariff tensions with Canada, Mexico, and the European Union recently. On Thursday, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU. The EU has been preparing options for a trade deal, while also preparing an extensive list of counter-tariffs that would affect 72 billion euros ($84 billion USD) of American products should talks fail. “There will be a huge impact on trade,” the EU’s chief negotiator said Monday.
In the second quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 59, down four points compared to the previous quarter. While this reading is still in positive territory, some remodelers, especially in the West, are seeing a slowing of activity in their markets. The second-quarter reading of 59 marks only the second time the RMI has dipped below 60 since the survey was revised in the first quarter of 2020. Higher interest rates and general economic uncertainty have affected consumer confidence and are headwinds for remodeling, but not to the extent that they have been for single-family construction, as is evident in June’s negative reading from the NAHB/Wells Fargo Housing Marketing Index (HMI). As a result, NAHB is still forecasting solid gains for remodeling spending in 2025, followed by more modest, but still positive, growth in 2026. …The Current Conditions Index averaged 66, down five points from the previous quarter. 
The State, Private and Tribal Forestry division’s budget would be eliminated in a proposed bill in the Senate. The Forest Service division deals most directly with pests that affect forests. The State, Private and Tribal Forestry is the federal leader in providing technical and financial assistance to landowners and resource managers to help sustain the nation’s forests. The federal investment leverages the capacity of state agencies and partners to manage state and private lands and produce ecological, social and economic benefits for the American people. Part of that money goes locally to companies to invest in innovative ways to use lumber. Collins Pine in Kane, Pa., received a $300,000 grant to install dry kilns in 2024. …Nationally, the State, Private and Tribal Forestry division funds research into wood energy and the use of advanced wood products, such as cross laminated timber, in building construction.
It had to be a joke, right? A group of MAGA lawmakers moaning about “suffocating Canadian wildfire smoke”. …But, no. …It makes no mention of the tens of thousands of Canadians forced to evacuate this year or those who have died. The signatories conveniently ignore the fact that smoke from the US side of the border regularly smothers those of us who live north of it. In fact, the complaint does not mention fires in the US at all, even though more than two million acres have burned so far this year, and Canadian firefighters have deployed to assist their US colleagues, just as US wildland firefighters have been helping in Canada. Given the MAGA credentials of the complainants, you may not be surprised to hear their complaint blames a “lack of active forest management”… admonishes Canada for not preventing arson and makes no mention of climate change whatsoever.
Warm temperatures, low river flows and declining water quality are sparking fears of another mass fish die-off in the Cowichan River this summer. The Cowichan Watershed Board said river conditions this summer “mirror” those of 2023, when an estimated 84,000 to 100,000-plus fish died after prolonged drought and heat. Samples recently collected from six points along the Cowichan River show the water is seeing significant daily fluctuations in pH and dissolved oxygen levels similar to those of 2023. …Weir flows were reduced this spring so more water could be maintained in the summer. Researchers are also looking to identify, protect and improve cold-water refuge areas along the river that could provide fish a respite from the heat when waters warm. …Built in the 1950s to provide water for the pulp mill at Crofton, the Cowichan weir is owned and operated by Domtar.
The U.S. Forest Services plans to cut its budget by $391 million for fiscal year 2026, according to a 
OREGON — Jeff Brink takes pride in working on the same land his father did, in the national forests surrounding Oakridge, Oregon. But in the decades since, less and less timber has been harvested, and more and more megafires have threatened his hometown. “There needs to be some active management, because no management has given us this result,” he said. When the Trump administration announced executive actions aimed at increasing timber production on federal lands, Oregonians had mixed responses. Loggers and timber towns celebrated the attention, while environmentalists sounded the alarm over fears of deregulation and environmental harm. Local stakeholders wonder what forest management will look like in practice. …The timber industry and environmentalists still have questions as to the actual implementation of policy and changes in practices by federal agencies. Oregon Wild is one of many environmental groups that believe the new executive actions threaten landmark environmental laws.
SPEARFISH, South Dakota — The Black Hills of South Dakota and Wyoming are not only a beautiful tourist destination but also a major part of the agricultural industry. Many are working to maintain the important role of forest management as a way of supporting agriculture, economies and public health. Jeremy Dedic, forest partnership coordinator for Wyoming State Forestry said, “It’s not like we’re growing corn, but it’s growing plants, and we can manage that and get our results,” Dedic said. …“Most recently, we’ve had some of our larger operators having to scale back their operations,” said Marcus Warnke, state forester for South Dakota. …“Thinning our forest, giving our trees space so that they have enough water, sunlight and nutrients to be healthy and resilient to fire and bugs,” Pierson said. “Those activities produce logs that we bring to our sawmills and make boards out of for public sale.”
Forests cover more than 30 million of Oregon’s 62 million acres – almost half of the state’s landmass. According to the Oregon Employment Department’s covered employment statistics, forestry and logging’s 681 establishments employed 8,787 workers statewide and added $717 million in payroll to Oregon’s economy in 2024. The Oregon Department of Forestry (ODF) estimates logging harvests totaled 3.6 billion board feet in 2022. While much of this timber feeds Oregon’s wood products industry, creating jobs and income, many jobs are also created planting, growing, and harvesting this resource. …The high level of forestry activity in Oregon also creates demand for a support activities industry. …Employment Department projections show that the logging industry in Oregon is expected to lose about 200 jobs, or 5% between 2023 and 2033 partly due to continued mechanization. Other industries within timber production, such as timber tract operations and support activities for forestry do not have published Oregon Employment Department forecasts.
ALEXANDRIA, Louisiana — Wildfires and drought destroyed over 60,000 acres of trees in the summer and fall months of 2023 and costing the state $71 million in timber loss. …The wildfires came from record-breaking high temperatures and little to no measurable rainfall that summer. Now, as Louisiana continues to revive its timber industry, there is a renewed interest in the Virginia pine trees that are across the state. But that is also being facilitated by the potential for tariffs on Canadian and Chinese wood and wood products. “The issue has been of Canada and China flooding our markets with their products,” Dr. Mike Strain, the commissioner of Louisiana’s Department of Agriculture and Forestry said. “So, all of that together, I think we’re going to see a strengthening in the timber industry.” …Strengthening the timber industry also calls for more paper mills. “We really need a mill in the Florida parishes,” he said.
Russia’s timber industry is warning of widespread production shutdowns as the sector reels from Western sanctions, declining demand and a surging ruble that has battered the country’s export competitiveness. …The Russian Association of Organizations and Enterprises of the Pulp and Paper Industry described the current moment as one of the industry’s most difficult periods in modern history. Industry data show that timber harvesting fell 13% in 2024 compared with pre-war levels in 2021, lumber production dropped 11% and plywood output declined 23%. Even pulp production, one of the sector’s more stable outputs, decreased by 3%. Major industry players including Segezha Group and ULK Group have been restructuring loans over the past two years in response to falling output, sliding prices and soaring costs. But the situation has continued to deteriorate, especially within the export-heavy pulp and paper sector. Compounding the problem is the Central Bank’s steep 20% key interest rate along with a hike in the profit tax rate from 20% to 25%.
New Brunswick’s biggest industrial carbon emitters pumped out lower amounts of greenhouse gases in 2023, but the reductions were not enough to keep pace with tightening emissions standards. The gap between the total emissions by the province’s 15 biggest industrial polluters and their regulated emissions limits grew larger, according to numbers from the provincial government. That left them paying more under the province’s credit-trading carbon pricing system. Even so, that system is gaining traction, with more of those credits changing hands. …New Brunswick’s industrial carbon price is based on a credit trading system, a financial incentive for the 15 largest industrial emitters to stay below their emissions standards. If they do, they earn what are called performance credits they can sell for a profit. Plants that go above their standards must buy credits, adding to their cost. …The 15 big emitters collectively bought $21.1 million worth of fund credits in 2023, up from $12.6 million in 2022.
NB Power’s estimated $300-million plan to convert its biggest plant in northern New Brunswick from burning coal to wood pellets would be environmentally damaging and waste a lot of energy, warns a new report. The Conservation Council of New Brunswick, an environmental organization looked at the plan. …They came up with findings that are at odds with NB Power’s rosy view. Running the plant full time on wood pellets, the critics said, would need more offcuts, forcing NB Power to import fuel from Europe. Furthermore, they warn that sourcing as much wood as possible locally would hurt the forest ecology. And lastly, they argue that burning pellets to create electricity is hugely inefficient and would drive up greenhouse gas emissions. …Energy Minister René Legacy told Brunswick News his department would take a close look at the report. But he alluded to the more than 100 jobs NB Power has created.
