“We’re just waiting for the dust to settle.” That sentiment was expressed recently by Nick Arkle, CEO of Gorman Bros., regarding the current 45% tariff on Canadian lumber exported to the US. In other words, what the industry is seeking more than anything else is clarity. …Complicating this scenario for lumber producers—and one that should not and cannot be overlooked—is provincial government policy, especially in BC, Ontario and Quebec. …If there is a potential silver lining in Canada to the ongoing tariff soap opera, it’s the promise by the Canadian Liberal government to build 500,000 new, affordable homes per year, thus theoretically creating significant domestic demand for building materials like softwood lumber. …While the experts are skeptical that the federal government will meet its goal of building 500,000 new homes per year… it will be worthwhile watching to see if Canadian softwood lumber producers will step up and benefit from this initiative.
Canada-US Trade Minister Dominic LeBlanc says the door is open for American officials to restart trade talks with Canada. …”Canada believed it was making progress with the Americans — and talks would eventually move to automobiles and softwood lumber — but Trump “decided to suspend those negotiations. That’s regrettable.” …Canadian, American and Mexican officials are gearing up to review CUSMA, which offers Canada crucial protection from many of U.S. President Donald Trump’s tariffs. …On Thursday, Canada’s ambassador to the U.S. Kristen Hillman downplayed signals from the Trump administration about breaking down the trilateral pact and said she hasn’t “heard any indication from the US side that they want to change that foundation.” …All three countries must indicate by July 1 of next year whether they want to extend the agreement, renegotiate its terms or let it expire. LeBlanc said in private the conversations are “much more reassuring” about CUSMA.
Hopes for relief on the tariffs front are likely on hold until the new year now that the US Supreme Court has adjourned for the holiday season before ruling on the matter of President Trump’s illogical and, likely, illegal trade tariffs. Their decision could come in January, which is a long wait for affected economies around the world. …It took just 35 days for lower courts to decide Trump’s use of the act for tariffs was invalid, which he appealed. …Rampant speculation is outlined by Daniel Schramm In the Missouri Independent: “
The Office of the US Trade Representative (USTR) held a hearing regarding the six-year review of the United States-Mexico-Canada Agreement (USMCA). Though some stakeholders advocated for maintaining the current framework, many called for targeted updates. Despite varied perspectives, there was broad consensus that USMCA should be preserved. Transshipment and circumvention of Section 232 tariffs emerged as recurring concerns, particularly from the automotive, steel and aluminum, and wood and lumber sectors. …Stakeholders from the wood products, millwork and cabinetry industries raised serious concerns about how USMCA’s current rules of origin are being exploited to circumvent U.S. trade remedies and undermine domestic manufacturers. …The organization’s representative urged the adoption of Labor Value Content (LVC) rules for wood products modeled after those used in the automotive sector to ensure that qualifying goods reflect substantial North American production and fair labor practices.
The negotiations that remade the North American Free Trade Agreement were, as one participant put it, a series of “near-death” experiences. …In the years since the U.S.M.C.A was signed, Mexico and Canada have become America’s top trading partners. Millions of jobs depend on this economic alliance, which exceeds $1.8 trillion in trade. …Last week, Trump suggested that he would exit the U.S.M.C.A.: “We’ll either let it expire or, well, maybe work out another deal with Mexico and Canada.” Some observers discount Trump’s bluster as mere gamesmanship. …He returned to the White House on a promise to create jobs and lower prices—to make the country “boom like we’ve never boomed before.” Instead, tariffs are fuelling inflation, and many experts believe that it is only a matter of time before the economy starts hemorrhaging jobs. …As in the previous round of negotiations, time does not appear to be on Trump’s side.
As US President Trump sticks with his campaign of tariffs on imports from Canada, some American industries are accusing Canadian competitors of using cheap materials from China in ways that violate free trade rules and undercut U.S. companies. The accusations emerged during recent public hearings in Washington into the future of the Canada-U.S.-Mexico Agreement (CUSMA). …Luke Meisner, counsel for the American Kitchen Cabinet Alliance, told the hearings that Canada and Mexico have become conduits for products from China, circumventing the hefty countervailing duties the US imposed on Chinese-made cabinets and materials in 2020. …Over the past five years, Canada “dramatically increased” its imports of made-in-China cabinets and cabinet materials — such as plywood, medium-density fibreboard (MDF) and moulding — while at the same time boosting exports of finished cabinets to the US, Meisner said. …The Canadian Kitchen Cabinet Association defends its products as Canadian-made.
The 
Lumber futures traded above $550 per thousand board feet as markets absorbed a dovish turn from the Federal Reserve that brightened the demand outlook for construction materials. The Fed’s widely anticipated 25bp cut and Chair Powell’s dovish rhetoric pushed traders to price additional easing next year, which should put downward pressure on mortgage rates and lift homebuilding and renovation activity. Those interest rate dynamics have heightened the incentive for builders and distributors to restock, while persistent tariff and trade frictions have constrained supply. Canadian log exports are down year to date even as shipments into the US have risen, Canadian manufacturing output has slipped and US lumber exports are lower, a mix that reduces available millfeed and forces buyers to compete for the supplies that remain.
The Bank of Canada is holding its key interest rate at 2.25%, a move that was widely expected after an encouraging round of third-quarter data showed the Canadian economy has withstood some trade war-induced turmoil. Central bank governor Tiff Macklem wrote in his opening remarks that the current rate is at “about the right level” to give the economy a boost while also keeping inflation close to its 2% target rate. Canada’s economy proved more hardy than expected in the third quarter, with GDP and jobs growth beating expectations, and the unemployment rate dropping to 6.5% in November. Inflation is hovering just above 2%, and the Bank of Canada’s core measures of inflation are trending closer to 3%. While the steel, aluminum, auto and lumber sectors have been pummelled by US tariffs, which is weighing more broadly on business investment, “the economy is proving resilient overall,” Macklem said.
ATLANTA — Home Depot gave a cautious outlook for fiscal 2026 as the housing market continues to lag. Shares of the home-improvement retailer fell 2.4% to $341.62 in premarket trading on Tuesday. The company expects sales to rise between 2.5% to 4.5% in fiscal 2026, the midpoint of which is up from its guidance for 3% growth this fiscal year. Analysts polled by FactSet were looking for growth of 4.5%. …Home Depot said it expects those metrics to rise at a faster clip if the housing market gains momentum and there is increased spend on larger projects, driven by pent-up demand. The Atlanta company’s market-recovery case forecasts sales will grow about 5% to 6%, earnings per share will increase about mid- to high-single digits and comparable sales will be up 4% to 5%. “We believe that the pressures in housing will correct and provide the home improvement market with support for growth faster than the general economy”.
The US Federal Reserve is poised to deliver its third straight interest rate cut Wednesday, while simultaneously firing a warning shot about what’s ahead. Following a period of remarkable indecision about which way central bank policymakers would lean, markets have settled on a quarter-percentage point reduction. If that’s the case, it will take the Fed’s key interest rate down to a range of 3.5% to 3.75%. However, there are complications. The rate-setting Federal Open Market Committee is split between members who favor cuts as a way to head off further weakness in the labor market and those who think easing has gone far enough and threatens to aggravate inflation. That’s why the term “hawkish cut” has become the buzzy term for this meeting. In market parlance, it refers to a Fed that will reduce, but deliver a message that no one should be holding their breath for the next one.
The Canadian Wood Council (CWC) welcomes the announcement made today by the Honourable Tim Hodgson, Minister of Energy and Natural Resources. The event celebrated funding for projects that strengthen Canada’s forestry sector and foster innovation in wood-based solutions. CWC received $8.5 million since 2023 to expand the use of wood-based products, broaden education on wood construction and contribute to the advancement of the National Building Code. …This funding has allowed CWC and its WoodWorks program to support design and construction professionals with expert resources, tools, and guidance that help accelerate the adoption of wood construction nationwide. As we continue this work, we will help catalyze sustainable demand for construction solutions that are not only innovative but also replicable and rapidly deployed, approaches that will help address Canada’s housing and affordability challenges at scale.
Mark Latino is the CEO of Lee Display, a Fairfield, California-based company… that still makes artificial Christmas trees, producing around 10,000 each year. Tariffs shone a twinkling light this year on fake Christmas trees — and the extent to which America depends on other countries for its plastic fir trees. Prices for fake trees rose 10% to 15% this year due to the new import taxes, according to the American Christmas Tree Association, a trade group. Tree sellers cut their orders and paid higher tariffs for the stock they brought in. Despite those issues, tree companies say they aren’t likely to shift large-scale production back to the US after decades in Asia. Fake trees are labor-intensive and require holiday lights and other components the US doesn’t make. …About 80% of the US residents who put up a Christmas tree this year planned to use a fake one. …That percentage has been unchanged for at least 15 years.
Band-aid solutions are not going to fix the flooding problems in the Chemainus River watershed, Chief James Thomas from the Halalt First Nation told North Cowichan’s council on Nov. 19. He said the watershed and its salmon are in jeopardy mainly due to logging practices that were conducted upstream in the watershed over the past 50 years. Thomas said the Halalt and its partners, who are working on finding solutions to the watershed’s issues, didn’t create the problem, they inherited it. There is general community consensus that gravel and sediment accumulation, scoured banks, and increased debris, largely from logging operations upstream, have increased in recent years causing extreme flooding downstream, including on Halalt reserve lands. …Thomas and Cheri Ayers from Waters Edge Biological Consultants made a presentation to council on the Chemainus Watershed Initiative. The initiative began following two flooding events in 2020 and 2021.
President Trump swept into office with a promise to ramp up the timber business on national forests. So far, they’re just treading water. The Forest Service reported relatively flat timber harvests and sales for the fiscal year that ended Sept. 30. …According to the agency’s cut-and-sold reports, national forests cut 2.52 billion board feet of timber for the fiscal year, down slightly from the 2.66 billion board feet cut during the last full fiscal year of the Biden administration. Sales volume totalled 2.95 billion board feet, a slight increase from the prior year but a drop from 3.08 billion board feet the year before that. The suppressed returns reflect some of the challenges in meeting Trumps’s directive to use national forests to reduce the nation’s reliance on wood imports. Those include wildfires, market conditions… and the Forest Service’s ability to set up and run timber sales after the administration whittled the workforce. [to access the full story, an E&E News subscription is required]
