Russ Taylor
A federal court dealt another blow to the Trump administration’s tariff agenda, ruling that the 10% global tariffs the president imposed earlier this year are illegal. …Kenneth Katkin, law professor at Northern Kentucky University, said the statutes that authorize tariffs simply do not authorize global tariffs. An appeal is expected. …This development is just one thread in a much larger story that continues to weigh on the housing market. Russ Taylor said the lumber market is getting hit from multiple directions at once, and no single factor is solely to blame. …”With the Iranian war, constricted trade flows, high oil prices, inflation, everyone’s being more conservative,” he said. “That keeps prices at bay.” …A lumber inclusion in the USMCA would ease some of the cost pressure but Taylor pointed out that the US domestic industry has done very well under the current tariff structure and has every reason to resist a deal that changes it.
A union representing lumber workers in Canada warned that the federal government needs to help “stabilize” the forestry sector as the trade war with the United States drags on and impacts productivity, leading to sawmill closures. The sentiment emerged at a Tuesday meeting of the House natural resources committee as it continued its study into Canadian energy exports, where Unifor national president Lana Payne told MPs that the industry continues to struggle. Industry Minister Mélanie Joly had unveiled a $1.5-billion aid package for the steel, aluminum and copper sectors on Monday, with the bulk of this amount offered through three-year loans under a program that will be created by the Business Development Bank of Canada (BDC). At the time, Joly stressed that Ottawa is still working to offer “similar terms” through BDC to the softwood lumber and forestry industries.
WASHINGTON — A federal court ruled Thursday against the new global tariffs that President Trump imposed after a stinging loss at the Supreme Court. A split three-judge panel of the Court of International Trade in New York found the 10% global tariffs were illegal after small businesses sued. The court ruled 2-1 that Trump overstepped the tariff power that Congress had allowed. The tariffs are “invalid″ and “unauthorized by law,” the majority wrote. …If the administration appeals, as expected, it would first turn to the US Court of Appeals for the Federal Circuit, based in Washington, and then, potentially, the Supreme Court. …Trump is taking steps to replace the tariffs that were struck down by the Supreme Court in January. …The Office of the US Trade Representative is looking into whether 16 US trading partners are overproducing goods, driving down prices and putting US manufacturers at a disadvantage.
FLORIDA — On the heels of Escambia County adopting an ordinance to establish an Economic Development Ad Valorem Tax Exemption (EDATE) for West Fraser, the sawmill company announced a $70.25 million expansion, creating 30 new jobs. The board voted to approve the ordinance, which will give the Canada-based lumber company a 70% ad valorem tax exemption for a period of five years. Shortly after the vote, FloridaWest Economic Development Alliance announced that West Fraser has invested $70,250,000 in capital expenditures to expand its existing sawmill operation in McDavid. …The project is expected to generate substantial economic activity across Escambia County, supporting local suppliers, contractors and service providers. …Over the next five years, the estimate of the taxable value lost to the county is $70,252,000 improvements to real property, and $3,400,000 to tangible personal property.
NEW YORK — Mercer reported first quarter 2026 Operating EBITDA of $7.8 million, a decrease from $47.1 million in the same quarter of 2025 and an increase from negative $20.1 million in the fourth quarter of 2025. In the first quarter of 2026, net loss was $52.0 million compared to $22.3 million in the same quarter of 2025 and $308.7 million in the fourth quarter of 2025. Mr. Juan Carlos Bueno, CEO, stated: “Our pulp sales realizations showed resilience this quarter as softwood pulp markets held steady, while hardwood pulp performance trended upward on favorable demand-supply dynamics. However, elevated fiber costs across our supply chain and a slower-than-anticipated recovery in prices continued to weigh on our results. …Mass timber momentum continues to build, backed by an order book and commitments of $171 million that support a multi-year production plan. …European softwood pulp prices increased compared to the fourth quarter of 2025 due to supply constraints, although these gains were offset by higher discounts.
VANCOUVER, BC — Canfor Corporation reported its first quarter of 2026 results. …The Company reported an operating loss of $72.5 million for the current quarter, compared to an operating loss of $415.9 million for the fourth quarter of 2025. After taking into consideration a $20.0 million reversal of a previously recognized inventory write-down, the Company’s adjusted operating loss was $92.5 million for the first quarter of 2026, compared to an adjusted operating loss of $145.0 million for the fourth quarter of 2025. These results largely reflected improved performance in both the lumber segment and, to a lesser extent, the pulp and paper segment. Canfor’s President and CEO, Susan Yurkovich, said, “While we saw an improvement in results, largely due to a supply-driven uptick in North American lumber pricing and higher production levels, demand remained relatively subdued. …Global pulp markets continued to face significant headwinds during the first quarter, with pulp producer inventories remaining elevated.”
VANCOUVER, BC — Western Forest Products reported a net loss was $19.9 million in the first quarter of 2026, compared to net income of $13.8 million in the first quarter of 2025 and net loss of $17.5 million in the fourth quarter of 2025. …The company reported Adjusted EBITDA of negative $13.6 million in the first quarter of 2026. In comparison, the Company reported Adjusted EBITDA of $3.5 million in the first quarter of 2025 and Adjusted EBITDA of negative $6.2 million in the fourth quarter of 2025. Other highlights include: Lumber production of 118 million board feet (versus 154 million board feet in Q1 2025), Lumber shipments of 113 million board feet (versus 156 million board feet in Q1 2025), Cedar lumber shipments of 25 million board feet (versus 31 million board feet in Q1 2025), Average lumber selling price of $1,422 per mfbm (versus $1,348 per mfbm in Q1 2025), and Average BC log sales price of $193 per m3 (versus $134 per m3 in Q1 2025).
MONTREAL — Stella-Jones announced financial results for its first quarter ended March 31, 2026. Sales for the first quarter reached $791 million, versus sales of $773 million in the corresponding period last year. Excluding the impact of 2025 acquisitions of $42 million and the unfavourable currency conversion effect of $30 million, pressure-treated wood sales increased by $10 million, or 1%, largely driven by an increase in wood utility poles volumes. …Eric Vachon, President and CEO said “Our performance continues to be supported by disciplined operations. As part of our commitment to continuous improvement, we are advancing targeted initiatives across the business, with a current focus on optimizing our Railway Ties production network, enhancing efficiency and supporting future growth. We are also progressing our strategic growth priorities, notably with the finalization of the site selection for our new U.S. steel lattice manufacturing facility.”
A panel at the 2026 SFI Annual Conference — Leveraging SFI Certification for Global Reporting Frameworks and Market Assurances — took on one of the more pressing questions facing the forest sector: as global disclosure frameworks multiply and investors demand quantifiable outcomes, does forest certification still do the job? Shenandoah Johns, Chief Environment and Sustainability Officer at West Fraser, walked through five major disclosure frameworks that have arrived in the last five years and identified the gap between what certification was designed to demonstrate and what regulators are now asking for. Paige Goff, VP Sustainability at Domtar, made the case for not overcomplicating what is already working. Kirsten Vice, Senior VP Sustainability and Canadian Operations at NCASI, framed 2026 as a year of influence — with key nature-related frameworks being finalized — and called on the sector to shape its own targets before others do it for them. Jason Metnick, President of SFI, moderated.
With support from the B.C. government, a Vancouver business is conducting a field trial of its technology to assess whether it can reduce the frequency of wildfires ignited by lightning. Through the Province’s Integrated Marketplace program, delivered by Innovate BC, Vancouver-based Skyward Wildfire Technologies is receiving as much as $1 million to assess the effectiveness of its lightning-caused wildfire prediction and reduction technology in reducing wildfires ignited by lightning. Lightning is the leading cause of wildfires in B.C. In 2024, lightning was responsible for 70% of wildfire ignitions and 97% of all area burned in BC. …Skyward’s technology uses proprietary AI-enabled forecasting to identify areas of elevated lightning-caused wildfire risk and a targeted intervention designed to reduce cloud-to-ground lightning strikes. This technology has the potential to support wildfire-prevention efforts in fire-prone regions in BC.
Russian timber and cellulose exports have collapsed by 50% between 2021 and 2025, the steepest fall of any sector tracked by NATO-frontline intelligence across four years of Western sanctions, with the same Latvian assessment revealing that sanctions have cost Moscow more than US$130 billion as it scrambled to source banned goods between 2022 and 2025. That is according to a new analysis published in April by the Constitution Protection Bureau (SAB), one of Latvia’s three security intelligence services, drawing on internal Russian institutional forecasts obtained through intelligence collection alongside SAB’s own assessment. Russia was the world’s largest softwood lumber exporter in 2021, ahead of its February 2022 invasion of Ukraine. …According to the analysis, Russia paid an additional US$32.5 billion each year to acquire sanctioned Western goods through intermediaries at inflated prices, excluding cases where no substitute was available. 
Commission attempts to retrospectively curb “rampant bureaucracy” in the EUDR are “inadequate”, according to the German Sawmill and Timber Industry Association (DeSH). DeSH says the new simplification package for the EU Deforestation Regulation (EUDR) falls far short of the goal of genuine simplification and continues to create uncertainty rather than clarity in practice. Instead of solving structural problems, DeSH says the Commission is attempting to retrospectively curb the rampant bureaucracy with ever-new guidelines, FAQs, and exemptions. …Ms Möbus says the goal of the EUDR – to combat global deforestation – is correct and important. “However, the EU has taken a wrong turn on the way there. The regulation has developed into a bureaucratic behemoth that poses enormous challenges for the companies affected.” …“The association call for a significant reduction in bureaucratic requirements, practical solutions for implementation in the supply chain, and genuine risk-based approaches that adequately consider regions without deforestation risk.”
New Brunswick’s wildfire season has begun with more forests burned than at this time last year, according to the government’s wildfire dashboard. As of Wednesday afternoon, the dashboard reported there has been 178 fires so far this season, which have burned 343 hectares of forest. At the same date in 2025, there had been 100 fires burning 87.7 hectares of forest. The 10-year average for the period up to May 6 is 84 fires burning 105 hectares. As of 9 a.m. Wednesday, there were no out-of-control fires in the province, compared with six Tuesday night. …New Brunswick’s wildfire season begins in early April and continues through the summer. Last year, several fires resulted in restrictions on forest trail use. In Moncton, municipal fire departments joined with provincial firefighters. …“Record-low precipitation, minimal snowpack, and prolonged drought have pushed fire risks higher than normal,” the Department of Natural Resources said.