Tom Hodgson
Federal Natural Resources Minister Tim Hodgson says Ottawa will continue to come to the forestry sector’s aid in the face of punishing tariffs, even amid threats from the US alleging that Canada is now further escalating with new subsidies. It’s a threat Hodgson dismissed as “hyperbole.” …Since August, the federal government has introduced over $2.35 billion in measures designed to ensure Canada’s forest sector remains competitive and resilient in the face of escalating US tariffs. …But it also comes as the US Lumber Coalition has begun to allege that a wide range of federal and provincial programs amount to unfair subsidies. … “We are in no way inflaming the situation with the Americans by reducing the amount of our fibre that goes into commodity lumber by doing other value-added products. That’s actually good for Canada, that’s good for Canadian workers, and it reduces the amount of wood that gets sent to the United States.”
Anti-dumping and countervailing duties, and now additional tariffs on softwood lumber and derivative wood products add to a long history of trade measures applied to Canadian exports. …Recent trade data shows exports of targeted wood products to the US have declined by roughly 11% in 2025 from a year earlier with losses concentrated in Quebec and BC. Export gains elsewhere have only partially compensated for reduced US market access—in part reflecting the geographical constraints in shipping lumber and wood products. …Average industrial capacity utilization rate for wood product manufacturing has declined roughly 10 percentage points to 75% in 2025 Q3 from a decade earlier, while employment in sawmills and wood preservation fell roughly 20% between May 2017 and November 2025 with more pronounced declines in BC (-32%) and Quebec (-13%). …Reduced domestic supply could also put pressure on downstream industries such as pulp and paper mills and construction. The combination of weak demand and constrained supply raises the risk of further production curtailments and mill closures.
US President Trump’s point man on trade talks says Canada needs to accept that tariffs will be a part of any deal with the administration, including renewal of the Canada-US-Mexico Agreement (CUSMA). In interviews after Trump’s state of the union address, US trade representative Jamieson Greer suggested Canada can’t expect to land a trade agreement that is free of tariffs. …”If Canada wants to agree that we can have some level of higher tariff on them while they open up their markets to us on things like dairy and other things, then that’s a helpful conversation.” It’s the clearest signal yet from the Trump administration that it’s aiming for a fundamental rewrite of the free-trade deals that have existed since NAFTA took effect in 1994. …He also criticized Canada for failing to agree to US requests to back off from “practices that we think are unfair”.
US President Donald Trump just lost his biggest emergency tariff weapon at the US Supreme Court – but for Canadian exporters and long‑term investors, the real story is that the pressure has shifted to narrower, more strategic sectors that matter for jobs, growth and returns. …Trump reacted by promising new tariffs through other statutes. …Section 232 now defines Canada’s real exposure. …Softwood timber and lumber: 10 percent tariffs imposed last October, alongside US countervailing and anti‑dumping duties on Canadian lumber that the Commerce Department increased from 14.5 percent to 35 percent earlier this year. …Upholstered wooden furniture, cabinets and vanities: 25 percent tariffs since last October; a planned increase in January was paused. …Dominic LeBlanc, Canada’s minister for US–Canadian trade relations, told CBC News that “what’s hurting the Canadian economy are the sectoral tariffs under a different American law,” and said this “reminds us again of the importance of diversifying our trading relationships.” 
President Donald Trump announced a temporary import duty under Section 122 of the Trade Act of 1974, shortly after the US Supreme Court struck down his tariffs imposed under the International Emergency Economic Powers Act. The Section 122 surcharge is scheduled to take effect February 24 and remain in place for up to 150 days. Under the proclamation, Section 122 duties do not apply to goods that are subject to Section 232 of the Trade Expansion Act of 1962 or that are USMCA compliant. The implications for wood products are as follows:
Raw logs were being loaded for export at the shuttered Crofton pulp mill – just weeks after hundreds of local workers were laid off over a lack of wood fibre, and as about 120 sidelined Chemainus sawmill employees brace for their EI benefits to run dry. “I don’t want a handout, I want a job,” said Brian Bull, who was laid off from Western Forest Products’ Chemainus sawmill. …North Cowichan’s mayor says repeated appeals to federal officials to grant workers the additional 20 weeks of EI benefits promised by the Prime Minister in the summer of 2025 have gone unanswered. “There’s about 120 workers impacted at the Chemainus sawmill. The majority are set to lose their EI benefits next month. …So laid-off Chemainus sawmill workers are urging the provincial government to stop raw log exports. Elzinga said he fears their the Chemainus sawmill may never re-open, due a lack of fibre supply.
The decision by the US Supreme Court to invalidate many of President Trump’s tariffs has been met with mixed reactions in Quebec, as the steel, aluminum and lumber sectors remain subject to US tariffs. Economy Minister Jean Boulet said, “its effects for Quebec seem limited,” noting that Quebec exports in accordance with CUSMA were already exempt. “American tariffs on lumber and other key sectors remain in place,” Boulet stressed. …Stakeholders from Quebec’s economic and union sectors pointed out that Friday’s ruling is far from putting an end to the trade war with our southern neighbors. …“While this decision is great news for free trade, its impact on Canada remains limited and we are not out of the woods yet,” said senior public policy analyst Gabriel Giguère in a statement. Moreover, the review of the USMCA planned for this year still looms over Canada-US relations.
The US Customs and Border Protection agency said it will halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. EST on Tuesday, more than three days after the US Supreme Court declared the duties illegal. The agency said in a message to shippers on its Cargo Systems Messaging Service that it will de-activate all tariff codes associated with US President Trump’s prior IEEPA-related orders as of Tuesday. The IEEPA tariff collection halt coincides with Trump’s imposition of a new, 15% global tariff under a different legal authority to replace the ones struck down by the Supreme Court on Friday. CBP gave no reason why it was continuing to collect the tariffs days after the Supreme Court’s ruling. The message noted that the collection halt does not affect other tariffs imposed by Trump under the Section 232 national security statute and the Section 301 unfair trade practices statute.
VANCOUVER, Washington — Canadian-owned Western Forest Products plans to expand its Fruit Valley manufacturing operation, according to pre-planning documents submitted to the city of Vancouver. Plans show the company expects to build up to three prefabricated steel buildings and an office building, as well as demolish its existing Fruit Valley lumber drying kilns and storage buildings. “We are supporting a modest expansion of our product and service portfolio,” Babita Khunkhun, the company’s senior director of communications, said. Khunkhun said planning for the expansion will continue throughout the year. The company intends to invest in new machinery at its Fruit Valley manufacturing site and make ready-to-install fabricated glulam beams, she said. The Fruit Valley operation is currently used for secondary lumber manufacturing. …A summer blaze left the company’s Columbia Vista sawmill beyond repair according to a state layoff notification from July. The company has decided to sell that site.
Lumber futures fell toward $550 per thousand board feet, marking a six-week low, as a stagnant North American housing sector failed to absorb heavy seasonal inventories. Demand weakened as January data showed a 7% year over year drop in single family starts and an 8.4% decline in units under construction. High 6.25% mortgage rates and a 5.8% slump in Canadian home sales during January 2026 further stalled new project starts. On the supply side, regional inventory remained bloated. While BC curtailments continued harsh winter storms in the US South halted jobsite activity more than mill output, creating a distributor logjam and forcing aggressive dealer discounting to clear yard space. Additionally, while Trump’s administration 45% softwood duties were meant to buoy prices they instead stifled demand by adding nearly $17,500 to average home costs. This eroded the builder confidence needed to clear current supply.
The strong momentum and bull run of basic materials carried over into 2026 and appears poised to be the TSX’s top-performing sector for the second consecutive year. While mining heavyweights continue to lead the surge, lumber stocks are delivering market-beating returns. Stella-Jones, Canfor Corporation, and Doman Building Materials are worth watching right now. These companies offer operational leverage and have maintained resilience amid persistent price volatility and trade restrictions.
Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (
US labor productivity in construction falls 30% from 1970 to 2024, while aggregate US labor productivity more than doubles over the same period, widening a long-running gap between construction and the wider economy. Since 1965, construction labor productivity falls by an average 0.6% per year, while economy-wide productivity grows about 1.6% per year, based on analysis by Goldman Sachs Global Investment Research. The analysis links part of the gap to limited innovation in construction equipment and processes after a period of faster adoption in the 1950s and 1960s. The share of industrial machines in total construction production costs rises from 4% in 1948 to 12% in 1968, then slips to 10% in the 1970s and stays near that level, while pre-fabrication’s share of new residential housing units falls from about one-third at its peak in 1960–1970 to 5%.
Contractors in certain niches can expect some meaningful materials price reductions after the Supreme Court struck down most of President Trump’s tariffs Friday. The court rejected Trump’s claim to authority to impose reciprocal tariffs. That would drive “a modest but meaningful reduction in materials price escalation” for specialty equipment, HVAC and electrical systems and fixtures, said Anirban Basu, chief economist at Associated Builders and Contractors. …But the administration quickly signaled plans for alternative tariff methods shortly after the ruling. AGC also noted other materials-specific tariffs on lumber, steel, aluminum and copper products are unaffected by Friday’s decision. Taken together, that means the Supreme Court decision “could be short-lived and completely counteracted,” said Basu. That back-and-forth tends to stall construction activity as owners and contractors weigh whether the decision will hold. …AGC has told builders not to hold their breath waiting for refund checks.
The forest industry and related associations, unions and community leaders have now coalesced behind the banner “forestry is a solution.” Their purpose, they say, is “to address the urgent challenges, from building affordable housing to reducing wildfire risks in our backyards” and to “rally British Columbians to support forestry workers and their families.” They will roll out the old dogma that BC practices the most sustainable forestry in the world. …The real purpose, I suspect, is that the coalition wants to continue the old model of intensive industrial forestry, despite the reality that our forests can no longer support this outdated model. In 2003, in an address at UBC, Pedersen, the chief forester of the day, stated that the forest industries’ plan was to harvest BC’s primary forests as quickly as possible and convert them into densely planted managed forests. Today, they have achieved that vision.
ARIZONA — The Forest Service budget to thin the forest is down. But hey, at least there’s a budget. That is the bad news/good news gist of a report on the 4-Forests Restoration Initiative (4-FRI) delivered last week at the Natural Resources Working Group meeting. Fortunately, the state Forestry Department is also continuing to fund thinning projects, including creating buffer zones around forested communities like Payson. However, time may be running out to restore the overgrown, drought-plagued forest. The meeting also featured a report documenting the worsening condition of the forest as thinning efforts falter. Jon Orona, with Arizona Department of Forestry and Fire Management, reported that 2025 was the fifth-driest year ever recorded – with average temperatures between 6 and 12 degrees above normal.
ARIZONA — A coalition of local governments, timber industry representatives and environmental groups plans to tell congressional leaders and US Forest Service officials this week that Northern Arizona’s forests — and the timber industry that depends on them — face collapse without construction of a second, 30-megawatt biomass-burning power plant. The group will carry that message to Washington, DC, arguing that a “biomass bottleneck” threatens forest restoration efforts, watersheds and rural communities. Two concurring reports outline the concern: one issued by the Eastern Arizona Counties Organization and the Natural Resources Working Group in the White Mountains, and another from the Greater Flagstaff Forest Partnership (GFFP) and the Forest Biomass Coalition Working Group. …The report concludes that, while private industry may eventually develop products such as fiberboard or biochar from forest byproducts, only a second biomass-burning plant near Flagstaff or Winslow offers a proven, near-term solution.
LITTLE ROCK, Arkansas — The Arkansas Department of Agriculture announced some of its forestry personnel will go to Oklahoma and Tennessee to help with wildfire suppression and winter storm response. Governor Sarah Huckabee Sanders authorized state forestry personnel to support wildfire suppression in Oklahoma and urban tree recovery in Tennessee. …Six wildland firefighters will go to Oklahoma for around two weeks. These firefighters will focus on attacking and suppressing new wildfires to prevent further spread. The Department is also sending four bulldozers and two pick-up trucks to help. Three urban forestry personnel will go to Tennessee to join an Urban Forest Strike Team, a specialized group of certified arborists, foresters, and urban forestry experts. Arkansas forestry personnel will help the UFST with tree damage and risk assessments, hazard mitigation planning, and technical expertise and training.
COWICHAN BAY, BC — Simon Fraser University researchers have uncovered concerning fibreglass contamination in a key estuary on Vancouver Island, raising concerns about how an as-yet overlooked contaminant could affect aquatic birds, marine life and coastal communities that rely on shellfish and seafood. A 
Wildfires have increased in frequency and severity over the past few decades. More fires are burning at the wildland-urban interface (WUI), where homes and other buildings meet the natural landscape—but our understanding of emissions from structure fires is still growing. New research led by the University of Colorado Boulder’s Cooperative Institute for Research in Environmental Sciences shows that common synthetic materials used in homes, like plastics and insulation, can release harmful compounds into the air when they burn. But synthetic materials make up only a small fraction of a home. Timber and wood panels make up the majority of the materials used, and the burning emissions from those are not so different from a vegetation fire. The work,