WASHINGTON — Canadians are waking up to a new and uncertain reality after U.S. President Donald Trump’s deadline for economy-wide tariffs passed with no relent overnight, triggering a continental trade war. The president’s executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, took effect at 12:01 a.m. ET. …Prime Minister Justin Trudeau is set to hold a press conference in Ottawa Tuesday morning with Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly and Public Safety Minister David McGuinty. Canada’s response is to start with tariffs on $30 billion worth of goods immediately and tariffs on the remaining $125 billion worth of American products 21 days later. The S&P 500 dropped two per cent in Monday afternoon trading. The Dow Jones Industrial Average dropped 1.5 per cent and the Nasdaq composite slumped 2.6 per cent. Ontario Premier Doug Ford warned Americans that Canada would have a strong response and suggested he could shut down the movement of critical minerals and energy into the United States. He said Trump needs to pull back for the sake of Americans and Canadians.
In related coverage:
- The Whitehouse: Trump Proceeds With Tariffs On Canada and Mexico
- Forbes: Trump’s Tariffs Start Today—Here’s How They Could Impact Prices
- NY Times: China and Canada retaliate with Mexico to counter on Sunday
- 11News Colorado: Experts weigh in as Colorado and the country prepare for tariffs
The U.S. Commerce Department today announced new preliminary anti-dumping duties on Canadian softwood lumber imports of 20%. …The duties won’t become final until August, when final determinations are expected to be made. …The new preliminary duties is just the first shot across the bow in what is expected to be a nasty trade war, with additional tariffs that may be layered on top of duties. …Anti-dumping and countervailing duties have been in place on Canadian softwood lumber at varying levels since 2017, following the expiration of the last softwood lumber agreement in 2015. The duties on Canadian softwood lumber have been effective in shrinking Canada’s market share… from about 35% in 2016, to about 24% as of the end of 2024.
Overnight, Jake Power went from reflecting on one of the best months that his Agassiz-based custom sawmill has ever had to staring into a potential recession sparked by U.S. President Donald Trump’s tariffs. Power, along with every other British Columbian, woke up to the reality of a trade war. …“Our business was growing, our customers were doing well,” said Power, CEO of Power Wood. “Now, I think we all expect a North American recession if this continues.” …Premier David Eby declared that “all bets are off” in terms of his response to standing up for the province. …Trade economist Werner Antweiler said he worries the most about B.C.’s forest industry, which was “already struggling (at) the edge of profitability.” …There is another looming danger in a trade war if it results in continuing depreciation of the Canadian dollar versus the U.S. currency, according to economist Bryan Yu.
KAMLOOPS — The U.S. Department of Commerce has announced plans to almost triple the anti-dumping duties on Canadian softwood lumber. …“It’s going to be devastating for our industry if we can’t come up with some cost saving methods to be able to not only be more competitive but also trading with our largest partner when it comes to our softwood lumber agreement. …Kamloops-North Thompson MLA and Forest Critic Ward Stamer believes B.C. needs to place a carbon tax on coal as a response. “Our party proposed a carbon tax on U.S. thermal coal through our ports last Monday, and really what we should be doing — whatever they are charging us in duties, we should be charging them back with a carbon tax. …The BC Conservatives asked for an update on their carbon tax proposal during Monday’s question period.
China suspended on Tuesday the soybean import licences of three U.S. firms and halted imports of U.S. logs, stepping up its retaliation for Donald Trump’s decision to impose an extra 10% duty on China. …The suspension of U.S. logs was a direct response to Trump’s move on March 1 to order a trade investigation on imported lumber. Trump had earlier told reporters that he was thinking about imposing a 25% tariff rate on lumber and forest products. “The announcement of import restrictions on U.S lumber and soybeans linked with phytosanitary issues follows a long history of similar measures by Beijing,” said Even Pay, agriculture analyst at Trivium China. …China is one of the world’s largest importers of wood products and the third-largest destination for U.S. forest products. It imported around $850 million worth of logs and other rough wood products from the U.S. in 2024, according to Chinese customs data.
AUGUSTA, Maine — Tariffs on Canadian imports and Ottawa’s retaliation on American goods could sever—or at least strain—the close ties between the forest product industries of Maine and eastern Canada. The state exported $775 million in forest products to Canada in 2023. …Much of the wood Maine sends across the border is in the form of raw logs, according to Dana Doran of Professional Logging Contractors of the Northeast. The timber goes to Canada for processing… and the finished wood products are then frequently re-imported and sold in Maine. …Doran has doubts that these tariff efforts will achieve their intended effect of boosting domestic production. “Most of those Canadian manufacturers have already invested in the United States,” Doran said. …However, others acknowledge that—even if foreign companies benefit—shifting the processing of wood back into the U.S. aligns with the White House’s protectionist aims.
The perpetually moving target of tariffs on Canadian lumber shipments to the US frustrated traders and had broad impacts on sales in many species. Despite middling demand, the threat of tariffs combined with relatively tight supplies left many prices higher for the week. The delay in announcement of preliminary AD rates by the Commerce Department injected further uncertainty. Despite inconsistent trading throughout February, the Random Lengths Framing Lumber Composite Price recorded its fourth straight increase and hit $461. That is its highest level since July 2023. Western S-P-F sales were steady but uneventful. Canadian mills weighed their responses to potential tariffs with plans ranging from adders on quoted levels to managing production and focusing sales to non-US destinations. Lumber futures were extremely volatile, swinging aggressively to every news report. The Southern Pine market was in disarray as traders processed a constant flow of mixed signals.
The full scope of the new investigation is not yet certain. The 
WASHINGTON – President Trump issued an executive order that seeks to ramp up logging across federal forests. …In response to the executive order, members of the Climate Forests Coalition, including Center for Biological Diversity, Sierra Club, Earthjustice, Oregon Wild, and WildEarth Guardians issued the following statement: “This executive order will decimate our federal forests. It will use tax dollars to line the pockets of corporate logging interests, undermine environmental laws, and take public forests out of public hands. This directive is part of a pattern to undermine science, gut the federal workforce, and privatize our public lands. Clearcutting our public lands for private profit will destroy mature and old-growth forests, pollute our air and water, and in bypassing the Endangered Species Act, actively drive vulnerable wildlife to extinction.” The order is being introduced just after a timber industry executive was appointed as the new Forest Service Chief.
President Trump has promised to “drill, baby, drill.” Now, he also wants to log. 
