The federal government has no plans to use legislative tools to penalize Canadian businesses for offshoring jobs to the United States or other countries to avoid American tariffs, the finance ministry says. The clarifying statement comes after Unifor urged Ottawa last week to use existing measures to prevent the loss of Canadian jobs to south of the border, and strengthen the law through legislative amendments. “The government is not implementing legislative tools to penalize Canadian companies who relocate abroad,” a finance ministry official said. “On the contrary, the government has put in place measures to support Canadian companies so they can continue to do business at home.” …The statement comes as Parliament returns for its first session in more than five months, finally allowing legislators to consider measures to respond to US President Trump’s trade war with Canada.
Tariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. …Lumber remains a primary concern, with countervailing and antidumping duties expected to more than double this fall. Steve Martinez, president of Tradewinds General Contracting in Boise, Idaho, recently spoke with CNBC to emphasize just how much lumber goes into the construction of a new home. “This entire house is built out of wood,” Martinez said. “I mean, we really do have wood on the floor, wood on the walls, wood on the ceiling. Can’t really get away from building a house like this without using a large number of wood products in the home.” As a result, price increases to lumber can cause a huge disruption for home builders. And lack of certainty adds complexity to the home-building process.
Domtar has been penalized $17,200 for nearly two dozen failures to control the release of emissions from its Skookumchuck, BC, mill. The kraft pulp mill was found to have violated pollution levels 23 times over eight months starting in 2021, according to a decision from director of the Environmental Management Act Bryan Vroom. On at least six occasions, the decision found Domtar failed to keep smoke emissions from a wood-waste-fired power boiler below the 40 per cent opacity required under its 2013 permit. …The company disputed the findings, arguing that a nearby air quality impact assessment showed the impacts to human health were “not significant” and that the ministry failed to show the violations would impact workers. In his decision, Environmental Management Act Bryan Vroom responded by reducing the severity of the failures to a level of “low to none.” …Domtar acknowledged the penalties in an email, and said it is working with B.C.’s environment ministry in response.
Domtar appears close to making a final decision about whether to convert its newsprint mill in Gatineau, Quebec, to a containerboard mill. …Last week, Unifor concluded labor negotiations with Domtar regarding the Gatineau site, and the final contract will likely be published by month’s end, said Daniel Cloutier, Unifor Quebec director. As part of the labor arrangement, agreed not to bargain, lock out or strike for eight years — on the condition that Domtar would move forward with the mill conversion, Cloutier said. Domtar agreed to proceed with the mill conversion investment, Cloutier said, although the company has not issued a final decision. Unifor anticipates that should come by autumn, if not earlier. …”one thing that could help them to make that decision was the guarantee that they will have no conflicts at [the] Gatineau plant while they proceed with the construction of the new facility,” he said.
The Coalition for Fair Trade in Hardwood Plywood has petitioned for antidumping and countervailing duties to counter unfair trade practices by Indonesia, Vietnam, and China. These petitions were filed on Thursday, May 22, with the U.S. Department of Commerce and the International Trade Commission and have significant implications for our economy, in which hardwood plywood plays a critical role in producing numerous downstream products. The Coalition for Fair Trade in Hardwood Plywood alleges that the governments of Indonesia, Vietnam, and China are actively subsidizing dozens of programs benefiting their industries, including providing products at subsidized rates and multiple grant, tax, and lending programs. 
SEELEY LAKE, Montana — A law passed during the 2025 legislative session could provide $6 million in low-interest rate loans for an entity that wants to start up a wood products facility. The measure could impact Seeley Lake, where Pyramid Mountain Lumber once operated. “I think the likelihood of you know, somebody coming here, obviously, there’d be opportunity at other mills as well, but they really like the, the ability to source timber from this site,” said Pyramid Mountain Lumber owner Todd Johnson. Johnson says the new law would incentivize anyone looking to open a new facility by providing funding for one portion of the total for opening a new mill. “I think the, the main designs behind it were so that it would allow somebody to secure a site. Six million dollars would go a long ways towards securing, you know, a site here in Montana,” said Johnson. 
Canada’s inflation rate eased to 1.7% in April, driven by a drop in prices after the federal government removed the consumer carbon tax, according to Statistics Canada. The slowdown came after the inflation rate hit 2.3% in March. Lower crude oil prices were also a factor in the decline, the data agency said. Despite the decline in headline inflation, core inflation measures all rose in April, some above three per cent — well above the Bank of Canada’s two per cent target rate. The central bank watches those numbers closely because they strip out volatile sectors and don’t factor in one-offs like the removal of the carbon tax. …The central bank is set to make its next interest rate decision on June 4. Porter still expects that the Bank of Canada will cut, given the outlook for weak economic growth in 2025, but said the bank might need more time to see how inflation plays out.
To state the obvious, in Ontario homebuilding is not keeping pace with population growth. This imbalance is driving sky-high home prices and rents, not only in the GTA but many other Ontario cities. What’s to be done? In the Ford government’s recent budget, “housing” appears not as a central theme but as one of several areas to receive “support” in light of Trump’s tariffs, mainly in the form of more money for local infrastructure. …And as part of this “housing” spending spree, the Ford government will continue to spend millions on the Community Infrastructure Fund—which targets smaller communities—and programs to encourage skilled trades, which could support housing development. … The Ontario government has already spent billions on its housing strategy, yet has not moved the needle on housing supply. Even Ford’s new budget with its massive housing “support” includes an abysmal forecast for new home construction. 
Economic uncertainty has produced a double whammy for the housing market: sluggish home sales and plodding construction. Last month was the slowest April for existing home sales in 16 years — a sharp rebuke to hopes that this spring the housing market would recover after two very sleepy years. In a May survey of builder confidence, home builder sentiment dropped to a level last seen in November 2023. The problem, as ever, is the cost of housing: Home prices are out of reach for many who would like to buy. And the tariff drama under President Trump has both made it more expensive to build new homes and made the future more unpredictable for would-be homebuyers. The result is a country where builders want to build, and buyers want to buy — but the future is too much in doubt.
WASHINGTON, DC – Total single-family home sales are expected to close 2025 at 4.92 million units, with existing home sales accounting for 4.24 million of those units, according to the May 2025 Economic and Housing Outlook from the Fannie Mae Economic and Strategic Research (ESR) Group. Revisions to the home sales forecast were driven in part by the ESR Group’s lower expectations for mortgage rates, which it now forecasts to end 2025 and 2026 at 6.1% and 5.8%, respectively. The latest outlook also projects real gross domestic product growing at 0.7% in 2025 and 2.0% in 2026 on a Q4/Q4 basis. …We now expect the Consumer Price Index (CPI) to rise 3.5 percent Q4/Q4 in 2025, unchanged from our April forecast. Core CPI is expected to rise 3.8 percent Q4/Q4 in 2025 (down from 3.9 percent previously) and 2.6 percent in 2026 (unchanged).
Volatile lumber prices are once again rattling the U.S. housing market, squeezing builders and threatening to exacerbate an already dire affordability crisis. Softwood lumber prices in April surged 23% year-over-year, while futures rose sharply in early 2025 amid fears of increased U.S. duties and widespread sawmill closures across North America, according to the National Association of Home Builders. This has weighed heavily on major homebuilders such as Lennar, D.R. Horton and Toll Brothers, which have all seen their stocks slump this spring. …“The unpredictability of lumber prices adds serious complexity to planning and budgeting,” said Steve Martinez, of Idaho-based Tradewinds General Contracting. …Beyond homebuilding, higher lumber costs are hitting renovations, fencing and interiors. The US Forest Products annual market review found that U.S. lumber production inched up… but demand continues to outpace supply. Environmental regulations, aging forests and labor constraints compound the challenge.
Q1 2025 exports of Southern Pine lumber (treated and untreated) were 12% behind the same quarter in 2024 at 122 MMBF, but up 2% over the fourth quarter of 2024. On a monthly basis, Southern Pine lumber exports were down 20% in March over March 2024 but up 4.6% over February 2025. When looking at the report by dollar value, Southern Pine exports are down 7% to $50 million in the first quarter of 2025 compared to the same period in 2024, but down 17% over the fourth quarter of 2024. Mexico led the way at $13.2 million, followed by the Dominican Republic at $10.4 million, and Canada at $4.3 million. The total global value in March hit a six-month high of $18 million. Treated lumber exports, meanwhile, were down 19% compared to the first quarter of 2024 at $28 million and down 6% over the fourth quarter of 2024.
Is the Alberta government hell-bent on eliminating what remains of the two caribou herds that live in the mountains just north of Jasper National Park? Looking at the province’s recently released draft management plan for the Upper Smoky area, one might think that is the case. Let’s set this up: the motivation behind the sub-regional plan in the first place was to convince the federal government that the province was doing a good job of caribou conservation. Spoiler alert: they haven’t! Meanwhile, I can’t help but think of the irony that… the company which stands to benefit the most is a US-based forestry corporation, Weyerhaeuser. …For decades now, provincial governments have been promising to conserve and rehabilitate caribou habitat. And for decades, those governments have not made good on those promises. As discussed in previous Jasper Local articles, for caribou to have a chance, they need some space.
SUNDRE – While the persistent, multi-year presence of a destructive pest known as spruce budworm has been noted by Alberta Forestry and Parks, an entomologist for the provincial government said the localized impact is not yet considered an epidemic. “We mapped some minor infestations that are on private land south of the Sundre area,” said Forest Health Specialist Caroline Whitehouse. …“From what we’re seeing from our aerial overview surveys – that’s the primary way that we are doing monitoring for spruce budworm – we’re not seeing what we would call an epidemic at this point,” she said. …Asked whether there are any regions in the province where there might be an epidemic unfolding, she said the department’s data from 2024 does not indicate as much. …Steve Bouchet, owner of Everblue Nursery said he is less worried about his own tree farm. …“But it’s also a forest fire risk.
BRUSSELS – According to a document obtained by, 11 governments are urging the European Union to delay or weaken its upcoming deforestation law. This policy, a world first, aims to stop the 10% global deforestation caused by EU imports of soy, beef and palm oil, among other products. However, it has become a controversial part of Europe’s environmental agenda. After complaints from Brazil and the US and a reduction in reporting rules, the EU has already delayed its launch for a year, until Dec. 2025. The Commission announced last week that it would spare most countries from the strictest checks. A group of eleven countries led by Austria, Luxembourg and Germany, have demanded that the European Commission further simplify the rules and delay the application date. …The countries’ paper, that the EU agriculture ministers in Brussels will be discussing on Monday, said the requirements are “disproportionate” to the regulation’s goal.
