Alice Palmer
On October 14, the US began charging a Section 232 (“national security”) tariff of 10% on imports of Canadian softwood lumber, on top of the duties that were already being charged. The premise that imports of Canadian 2x4s, sofas and bathroom vanities are somehow a threat to America’s national security is so ludicrous it hardly deserves rebuttal (although you can read a good analysis here). …The duties, in contrast, have been promoted as being carefully calculated responses to Canadian wrongdoing. The US Lumber Coalition outlines how the duty investigations by the US Department of Commerce take over a year to complete. Even the duty rates, calculated to the hundred of a percent, give off an aura of precision and accuracy.
Nevertheless, the duty rates are every bit as ridiculous as the new tariffs; this ridiculousness is just more cleverly hidden. For example, the argument that Canadian companies pay less for their logs than American companies do has been shown to be inaccurate: cost comparisons by analysts such as Forest Economic Advisors show that Canadian mills’ log costs are often higher than those of their US neighbours. Similarly, the argument that Canadian logs are “dumped” into US markets is based on biased calculations, due to the US Commerce Department’s use of zeroing in its calculations. …Selectively including some export sales while excluding others from the calculations – biases the results against importers and yields an imposed competitive advantage to the US domestic mills. …Graphically, we can see that the higher-priced US transactions no longer balance out the lower-priced transactions, because the higher-priced transactions have been “zeroed out” (ignored in the calculations). There is an obvious bias to this calculation method!
US President Donald Trump has announced an immediate end to all trade negotiations with Canada over an advert critical of the tariffs he has imposed on the nation. The advert, sponsored by the province of Ontario, quoted Trump’s predecessor, Ronald Reagan saying tariffs “hurt every American”. …In the minute-long advert published last week… the video excerpts a 1987 national radio address by Reagan that focused on foreign trade. …The Ronald Reagan Foundation said the advert “misrepresents” the former president’s address, without specifying why, and accused the Ontario government of not seeking permission to use and edit the remarks. The foundation said it was “reviewing its legal options”. Trump referenced this statement, and said the video was designed to “interfere with” the US Supreme Court’s upcoming decision in November on whether Washington’s sweeping tariffs on many nations’ products are legal.:
LITTLE ROCK — Arkansas’ leading industry, agriculture, is facing a crisis. But it’s not just row-crop farmers that are struggling — the forestry industry is as well. The market for timber has become so bad that mills are closing and loggers are getting out of the business. “This is devastating to the timber industry in South Arkansas. Eight of the last 11 weeks, we have experienced mill closures in Arkansas, some permanent, some temporary,” said John Dawson, president of Arkansas Pulpwood Co. in Camden. “We’re seeing loggers drop out. Lifelong families that are two, three, four generations of loggers are getting out of the business. Banks in South Arkansas are moving away from loaning money to loggers,” Dawson said. As you’d expect, demand for paper has plummeted. …But demand for lumber is down too. …There’s simply too much supply for the diminishing demand.
Lumber futures tumbled toward $590 per thousand board feet, a near one-month low, as weakening US housing activity and pre-tariff front-loading left wholesalers awash with stock while stacked US duties on Canadian imports and trade uncertainty pushed prices lower. US homebuilding has slowed, with housing starts falling 8.5% in August to a 1.307 million annualized pace and building permits drifting lower. Many US buyers front-loaded inventories ahead of expected import tariffs earlier this autumn, leaving distributors to work down excess stock before fresh order flow returns. On the supply side, a 10% Section-232 tariff added in mid-October atop roughly 35% in existing duties lifted border costs above 45% for many Canadian shipments, forcing sellers to find new markets or accept lower domestic prices. Producers like Interfor have trimmed output since mid-October, but the cuts are too recent to significantly reduce inventories or regional log supply.
VANCOUVER, BC —
OTTAWA — Some economists say surprisingly strong September inflation figures will give the Bank of Canada pause ahead of its interest rate decision next week. Annual inflation accelerated to 2.4% last month, Statistics Canada said Tuesday. That’s a jump of half a percentage point from 1.9% in August and a tick higher than economists’ expectations. …The September inflation report will be the Bank of Canada’s last look at price data before the central bank’s next interest rate decision on Oct. 29. The central bank lowered its benchmark interest rate by a quarter point to 2.5% at its last decision in September. The Bank of Canada’s preferred measures of core inflation showed some stubbornness in September, holding above the three per cent mark. “This will make the Bank of Canada’s decision a bit more interesting next week than previously expected,” said BMO chief economist Doug Porter.
Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 0.8% month over month in September and gained 5.5% year over year. Meanwhile, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 1.7% month over month and rose 8.4% year over year. …Prices for lumber and other wood products declined 4.4% in September, after two straight monthly increases. The decrease was caused by falling softwood lumber prices (-10.7%), the largest decrease since June 2022. In August 2025, the United States announced a significant increase to the duties it levies on Canadian softwood lumber.
Lumber futures fell below $610 per thousand board feet, their lowest level since October 8 and down 12% from a three-year high in early August, as a slowing US housing market outweighed potential supply curbs from tariffs. August building permits dropped to a seasonally adjusted annualized rate of 1.33 million, the lowest since May 2020, while housing starts fell 8.5%, marking the fourth-lowest reading in over five years. Earlier this month, the US imposed a 10% tariff on Canadian lumber, with the Trump administration stating it aims to expand domestic timber harvesting and reduce reliance on foreign lumber. Looking ahead, expected Federal Reserve rate cuts could stimulate construction and home buying and encourage homeowners to borrow for repairs and renovations, the largest driver of lumber demand. However, signs of a slowing labor market and rising inflation suggest demand may remain subdued.
Alain Ouzilleau, owner of Groupe Cabico, spent millions upgrading his two factories in Quebec and Ontario into state-of-the-art facilities shipping around $100-million worth of high-end kitchen cabinets to the US each year. Almost overnight, that business has been thrown into jeopardy. …“We have very long-term loyal customers,” Mr. Ouzilleau said. “But the 50% that is planned to be effective January 1st is just a death sentence.” …Hundreds of other Canadian cabinet and furniture makers also stand to lose their key export business, with limited ability to expand in a crowded domestic market. …What started as tariffs on steel, aluminum and automobiles has expanded to include copper and lumber, with a tariff on heavy trucks slated to come into force in November. The Trump administration is also conducting investigations into aircraft, semiconductors and industrial machinery, among other industries, suggesting more tariffs are on the horizon. [to access the full story a Globe & Mail subscription is required]
Section 232 tariffs were once seen as a fortress for US metals. Yet, that fortress now casts a much longer shadow. Companies far removed from the steel and aluminum sector could soon find themselves ensnared in tariffs they never imagined, thanks to the inclusion process for “derivative” products. The Trump Administration has steadily expanded Section 232 authority well beyond their original steel and aluminum targets, to copper, automobiles, trucks, lumber, and even wooden cabinets. These tariffs, which range from 10% (for lumber) to 50% (for steel and aluminum), are layered on top of normal import duties. At first glance, these measures appeared to strike only those industries handling raw materials. But in 2025 the Administration sought to close what it saw as a loophole: downstream products containing tariffed metals that could enter duty-free. As a result, section 232 tariffs were imposed on the raw material and a finite list of derivative products.
Anthony Cabrera, who started working with a contractor in March to construct the three-bedroom house, was eager to get ahead of a fresh round of tariffs on key building materials and home items that took effect earlier this week. Mr Cabrera had already seen his initial budget of roughly $300,000 balloon to $450,000 as prices for a range of products. …A recent report from Goldman Sachs found that US consumers will shoulder as much as 55% of the cost. It takes time to raise prices on consumers, the economists noted, and US firms will increasingly pass on costs in the coming months. The new tariffs “will create additional headwinds for an already challenged housing market” Buddy Hughes, chairman for the NAHB, said. Affordable housing construction could be hit particularly hard, said Elena Patel, of the Urban-Brookings Tax Policy Center. …Matthew Walsh, at Moody’s Analytics, said that cost uncertainty will be the most immediate effect.
Ireland must realise the “massive opportunity” that exists as timber construction is set to triple market value and deliver climate action, Forest Industries Ireland (FII) said. The director of FII, Mark McAuley has welcomed a 
More companies that provide rayon, lyocell and modal to fashion brands are sourcing less from ancient and endangered forests, according to the nonprofit Canopy. Although the vast majority of cellulosic fibers are still spun from virgin materials, some of the biggest producers have been quickly adopting forest-friendly and circular materials. 70% of companies making semi-synthetic, cellulose-based fibers now exhibit green practices that reduce pressures on forests. 54% of fiber producers that the group tracked have reached the nonprofit’s favorable green rating. …Canopy uses this annual report in part to help brands make informed sourcing decisions. The use of recycled materials for such fibers is still rare, although it grew to 1.1% in 2024. Such textiles represent only 6% of the global fiber market, according to Textile Exchange. It found that fibers approved by Forest Stewardship Council (FSC) or other certification made up as much as 70 percent of cellulosic fiber market share.
The bipartisan Fix Our Forests Act passed out of the Senate Agriculture Committee on Tuesday morning, marking the first advancement of the bill since it previously stalled in committees under both the Biden and the previous Trump administration. The Act would create an interagency Fireshed Center focused on wildfire prediction and tracking, establish fireshed management areas in forests with high wildfire risks, and expedite the review of wildfire-related forest management projects under the National Environmental Policy Act. The act has gained support from lawmakers on both sides of the aisle, along with numerous environmental and wildfire-focused organizations. Critics of the Act claim it would further open up 
EUGENE, Oregon — With the Trump administration poised to rewrite forest management policy, groups are on guard for changes to climate and lumber harvesting sections. Travis Joseph has a message for environmental groups worried that the Pacific Northwest’s oldest trees are about to fall to loggers: Timber companies don’t really want to cut them down. Joseph, who heads a timber industry group and is a former aide to ex-Democratic Rep. Peter DeFazio of Oregon, made that proclamation. …“I love these trees, too,” said Joseph, CEO of the American Forest Resource Council (AFRC). “But they’re at risk. Let’s save them. Let’s come in here and protect them.” Joseph’s group says the threat to big trees in western Oregon — these giants were 5 or 6 feet across at the trunk — isn’t logging. It’s wildfire that’s becoming a bigger menace as climate change makes summers hotter and reduces the winter snowpack. [to access the full story a subscription is required]
CLANCY, Montana — Healthy forests depend on a strong forest products industry. Sawmills help support thousands of Montana jobs, reduce wildfire risks, and provide a renewable resource. Despite recent mill closures in Missoula and Seeley Lake, Marks Lumber in Clancy continues to carry on. …Both Roseburg Forest Products in Missoula and Pyramid Mountain Lumber in Seeley Lake closed last year. Marks Lumber has been open for 36 years, and they have adapted to industry changes before. “ …In light of the recent closures, they have made some changes, including shifting to more board production (processed wood) rather than the raw tree, which is more expensive to manufacture, and slowing down on how much logging they do. Marks Lumber also had to change where their sawdust and chips go. Roseburg used to buy that material, but now they send them to Weyerhaeuser Forest Products in Columbia Falls.
The European Union proposed granting companies six months of leeway to comply with its landmark law to curb deforestation across the world, rejecting a longer delay despite industry complaints. The EU’s Deforestation Regulation aims to tackle the felling of trees associated with imports. Yet it has faced criticism at home and abroad for being too bureaucratic. The European Commission proposed Tuesday giving large companies six months of relief from sanctions after the law goes into effect at the end of the year. Bloomberg previously reported plans to delay implementing the rules by a year. …Both parliament and member states will need to sign off on the changes before the end of the year, and have the right to propose amendments. …A six-month adjustment period will be welcomed by environmental activists, alarmed by high rates of deforestation, said Luciana Chávez. [to access the full story a Bloomberg subscription is required]
PASCAGOULA, Mississippi — A fire is burning inside one of the wood pellet domes at the Port of Pascagoula. The fire started Monday afternoon inside one of the two Enviva domes at the port. Jackson County Emergency Management Director Earl Etheridge said there is no danger of explosion. Jackson County firefighters are on scene to assist Enviva and port crews. The fire started Monday afternoon inside one of the two Enviva domes at the port. …Etheridge says that Enviva is injecting the dome with pressurized nitrogen to suppress the fire. The fire is contained to the dome. Crews are working to offload the 20,000 metric tons of wood pellets. 
Google has announced plans to address greenhouse gases beyond carbon dioxide by purchasing credits to support the emerging market for removing short-lived but highly potent “superpollutants.” The company will buy up to 25,000 tonnes of superpollutant-destruction credits by 2030 from two organisations, Recoolit and Cool Effect—equivalent to about one million tonnes of CO₂ removal over the long term. While carbon dioxide remains a key focus, Google said gases such as methane, hydrofluorocarbons (HFCs), chlorofluorocarbons (CFCs) and nitrous oxide have a much greater near-term warming impact. “It’s the right thing to do for the planet,” said Randy Spock, Google’s carbon credits and removals lead. “CO₂ is obviously very important… but if we think only about CO₂, then we’re just looking at one piece of the puzzle.” …Sam Abernethy, a climate scientist at Spark Climate Solutions, said: “Superpollutants only get a few percent of climate finance… that’s a misallocation given their importance.”
Atmospheric carbon dioxide (CO₂) rose faster in 2024 than in any year since records began. …Our new satellite analysis shows that the Amazon rainforest is struggling to keep up. And worryingly, the satellite that made this discovery could soon be switched off [due to proposed NASA budget cuts.]. Systematic measurements of CO₂ in the atmosphere began in the late 1950s. …Across six decades of measurements, CO₂ has gradually increased. …The largest change was over the Amazon, where much less CO₂ is being absorbed. Similar slowdowns also appeared over southern Africa and southeast Asia, parts of Australia, the eastern US, Alaska and western Russia. Conversely, we detected more carbon being absorbed over western Europe, the US and central Canada. …It’s not yet clear whether 2023-24 is a short-term blip or an early sign of a long-term shift. But evidence points to an increasingly fragile situation, as tropical forests are stressed by hot and dry conditions.