Northern Ontario’s softwood lumber industry would be decimated if Trump implements a tariff on Canadian goods said Wendy Landry, president of the Northern Ontario Municipal Association and mayor of Shuniah. …Ian Dunn, CEO of the Ontario Forest Industries Association (OFIA) said softwood lumber duties are expected to double this year, as well, to about 30%-35%. “In reality, Ontario lumber producers could face 60% tariffs at the border, which would effectively wipe out all US shipments,” Dunn said. “In terms of global exports, Ontario exports about $7.9 billion of forest products per year. 79% of that goes to the US,” he said. “Sawmills produce lumber, but they also produce residuals which are consumed by the pulp and paper mills.” “If there’s additional impacts, and there’s less production at the sawmills, there is less raw material for the pulp and paper mills,” he said.
In related forest sector coverage:
- United Steelworkers: David McCall calls on Trump to reconsider tariffs on Canada
- Forest Products Association of Canada: Derek Nighbor responded to US tariffs
- BC Council of Forest Industries: COFI opposes the US government’s tariff decision
- BC Lumber Trade Council: US Lumber Tariffs are Unjustified and Harmful
- Tom Sundher in the Vancouver Sun: If my US customers want the wood, they’ll have to pay the tariffs
- Ontario Forest Industries Association: Additional tariffs present a looming crisis to Ontario
President Trump conceded Sunday that there may be “some pain” from his sweeping tariffs on Mexico and Canada, but they will eventually lead to a new “GOLDEN AGE.” Nice of him to promise a glorious future because the pain is already unfolding. …He also included a blast at these columns for leading the “Tariff Lobby” after our editorial called his 25% across-the-board tariffs on our friends and neighbors “
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Lumber futures surged to over $590 per thousand board feet, approaching the two-month high of $600 from January 6th following US President Trump’s decision to implement tariffs on Canada, a major supplier of wood to the US. The tariffs were threatened by the US President shortly after taking office, but conflicting messages from the Presidential administration raised skepticism for investors on whether trade barriers would actually be raised. According to the latest data, Canada supplied around 30% of lumber used in the US last year. The 25% tax on Canadian goods, including wood, add to the already existing anti-dumping duties of 14.5%, raising capacity pressures on domestically produced alternatives. In the meantime, the greater degree of confidence that the Fed will deliver more than one rate cut this year drove benchmark mortgage rates to ease below 7%, giving some respite to construction demand. [END]
Framing lumber markets hovered in a holding pattern as traders embraced a wait-and-see approach to a potential 25% tariff on Canadian shipments. The Random Lengths Framing Lumber Composite Price finished the week $1 lower. Western S-P-F buyers moved to the sidelines in late trading, citing minimal immediate needs and uncertainty about the tariffs and near-term prospects. …Price weakness lingered in the Southern Pine market amid sluggish to stagnant sales. Buyers lacked urgency and the potential impact of tariffs on demand for SYP was a widespread topic of conversation. …Traders debated how much of a price spread between Western S-P-F and SYP would need to emerge before end users substituted species on a larger scale. …In Coast markets, Hem-Fir dimension continued to face serious downward pressure from soft Inland prices. Meanwhile, dry Douglas Fir dimension prices stabilized, assisted by a green market that has found its footing.