Canada’s New Softwood Lumber Subsidies Exceed C$2 Billion – Solely to Prop Up Canada’s Massive and Harmful Excess Lumber Exports

By Zoltan van Heyningen, Executive Director, U.S. Lumber Coalition
The US Lumber Coalition
April 2, 2026
Category: Business & Politics
Region: United States

Washington, D.C. – Canadian federal and provincial governments have announced over C$2.1 billion worth of new taxpayer-funded subsidies for the Canadian forestry sector in the last seven months in response to the enforcement of U.S. antidumping and countervailing laws and imposition of President Trump’s Section 232 tariff measures.  

“Responding to U.S. trade law enforcement by doubling down on Canada’s unfair trade practices is both reprehensible and counterproductive,” stated Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition.  “The continuation of dumping practices supported and sustained by growing Canadian taxpayer-funded subsidies for the softwood lumber industry will only result in higher antidumping and countervailing duties in the future, as the ongoing trade case captures today’s unfair trade behavior.”

“As services are being cut by Prime Minister Carney and Canada’s provincial governments because of budget constraints, Canadian taxpayers would do well to understand that subsidies provided to Canadian softwood lumber companies, many of whom are investing their resources in the United States, will be collected by the U.S. government in the form of antidumping and countervailing duties that end up in the U.S. Treasury,” added van Heyningen.

“The more subsidies Canada provides to its industry, the more duties will get collected at the border for the United States to spend on its priorities.  It is a cycle where Canada just keeps digging a deeper hole.  Unfortunately, Canadian subsidies to prop up Canada’s massive and disruptive excess lumber capacity are also acutely detrimental to the U.S. softwood lumber industry, U.S. workers, and U.S. forestry dependent communities,” continued van Heyningen.

The U.S. Lumber Coalition will continue to fight for U.S. forestry workers, communities, and companies who are harmed by Canada’s continued and growing unfair trade practices.  The Coalition strongly supports President Trump’s trade policy priorities, including the strong enforcement of U.S. trade laws and the President’s focused and appropriate Section 232 tariff measures.  The President’s commitment to these priorities has set the stage to reshape the North American softwood lumber industry in favor of the United States and achieve the President’s objective of self-reliance for our softwood lumber needs.

“Canada’s softwood lumber market share has been pushed to lows not seen since the 1970s.  U.S. trade law enforcement against unfairly traded Canadian imports has resulted in Canadian imports accounting for an average of 18.8 percent of the U.S. market since August 2025, down from 32 percent in 2016.  Simultaneously, imports from other foreign sources are also trending lower.  This translates to direct gains in the market for U.S. softwood lumber producers and workers, who are steadily increasing the supply of Made in USA. softwood lumber here at home,” stated Mr. van Heyningen.

“We must continue to explore all trade law enforcement options to finish the job of permanently replacing unfairly traded Canadian softwood lumber imports that have long decimated U.S. jobs with softwood lumber that is made in the U.S.  More U.S. lumber produced by U.S. workers to build U.S. homes is the solution to a reliable and stable supply of lumber for the United States.”

 

 

About the U.S. Lumber Coalition

Video: Building American Dreams

The U.S. Lumber Coalition is an alliance of large and small softwood lumber producers from around the country, joined by their employees and woodland owners, working to address Canada’s unfair lumber trade practices. Our goal is to serve as the voice of the American lumber community and effectively address Canada’s unfair softwood lumber trade practices. The Coalition supports the full enforcement of the U.S. trade laws to allow the U.S. industry to invest and grow to its natural size without being impaired by unfairly traded imports. Continued full enforcement of the U.S. trade laws will strengthen domestic supply lines by maximizing long-term domestic production and lumber availability produced by U.S. workers to build U.S. homes. For more information, please visit the Coalition’s website at www.uslumbercoalition.org.

 

NEW CANADIAN SOFTWOOD SUBSIDIES TRACKER

Since August 2025, Canada announced an estimated C$2.1 billion in forestry-specific subsidies.  In total, Canada has pledged to make available more than C$9.9 billion dollars to support the forestry industry.

Federal: C$1.7 billion in Forestry Subsidies and making available more than C$9.152 billion in total aid

 

In November 2025, the GOC announced an additional $500 million in funding for this program, resulting in a total of $1.2 billion in loan guarantees available to Canadian softwood lumber producers.  (https://globalnews.ca/news/11543966/liberals-loans-lumber-producers-foreign-steel/)

In January 2026, GreenFirst Forest Products Inc. announced that it received a $30 million loan under this program “to support liquidity and ongoing operations amid continued market volatility in the North American lumber sector.”  The loan will give the company “financial flexibility and provide{} additional runway as the Company continues to navigate challenging lumber market conditions while executing on its operational and strategic priorities.” (https://greenfirst.ca/2026/01/greenfirst-secures-30-million-term-loan-under-federal-softwood-lumber-program/)

In March 2026, Conifex Timber Inc. announced that one of its subsidiaries received a $19 million loan under this program “to repay a bridge advance from Conifex’s existing senior secured timber lender.” (https://www.globenewswire.com/news-release/2026/03/05/3249802/0/en/Conifex-Announces-Secured-Term-Loan-with-BDC-under-the-Softwood-Lumber-Guarantee-Program.html)

  • NRCan Forest Industry Transformation Programs:  In August 2025, the GOC announced that it would commit $500 million beginning in FY26 to “supercharge product and market diversification and make the industry more competitive globally.”  This funding will be provided through programs including the Forest Innovation Program, Investments in Forest Industry Transformation, Green Construction Through Wood, the Indigenous Forestry Initiation, Expanding Market Opportunities program, and Forest Systems Information and Technology Enhancement program.  (https://natural-resources.canada.ca/forest-forestry/forest-industry-trade/measures-transform-canada…)

 

 

Alberta

 

British Columbia: C$192.5 million for the forestry industry specifically (including 170 million estimated for stumpage deferral), and more than C$612.5 million in total

 

  • Regional Tariff Response Initiative: In October 2025, as part of the GOC’s strategy announced in September, the GBC launched this program to “defend Canadian jobs, industries, and supply chains” and to “protect Canadian businesses and workers from the impact of tariffs.”  Approved projects may receive $200,000 to $10 million in funding.  Proposals from businesses in certain sectors, including forestry, will be prioritized.  (https://www.canada.ca/en/pacific-economic-development/services/funding/regional-tariff-response-initiative.html)

 

  • Canada-British Columbia Workforce Tariff Response: In January 2026, the GBC amended its Labor Market Development Agreement (LMDA) with the federal government, in which the GOC will “provide a time-limited, targeted funding increased under the Canada–British Columbia LMDA through the Canada–British Columbia Workforce Tariff Response for fiscal years 2025-2026 to 2027-2028, with reporting requirements extending to 2029-2030, to support workers and employers in steel, softwood lumber, and other directly and indirectly tariff-affected sectors.” (https://www.bclaws.gov.bc.ca/civix/document/id/oic/oic_cur/0002_2026).

 

In March 2026, it was announced that the GOC and GBC are investing $70.4 million in this program over the next three years.  The program will “support more than 8,000 workers in industries affected by global tariffs.”  (https://www.hcamag.com/ca/specialization/leadership/704million-plan-bc-employers-get-funding-to-retrain-tariffhit-workers/567710)

 

 

 

 

 

  • FireSmart Community Funding and Supports Program:  As part of the Budget 2026 announcement, the GBC announced in February 2026 that it will be investing an additional $15 million in the FireSmart Community Funding and Supports program to “reduce{} wildfire risk by funding planning, education, co-ordination and fuel-management activities on publicly owned and Crown land.” (https://news.gov.bc.ca/releases/2026FOR0004-000228)

 

Manitoba

  • Canada-Manitoba Workforce Tariff Response: In March 2026, the GOM announced that through the Workforce Tariff Response program, it would be receiving $18.2 million over the next three years to “retrain displaced workers for high demand sectors, provide upskilling opportunities for current employees and support businesses as they adapt to new products and markets.”  The fund will benefit workers in industries affected by tariffs, such as steel and lumber.  (https://www.gov.mb.ca/asset_library/en/budget2026/budget2026.pdf)
  • Tax Deferrals for Businesses Impacted by Tariffs and Wildfires:  In its Budget 2026 announcement in March, the GOM stated that would be providing “targeted tax deferrals for businesses impacted by tariffs and wildfires” to “give{} businesses flexibility to manage shot-term financial pressures.”  (https://www.gov.mb.ca/asset_library/en/budget2026/budget2026.pdf)

 

Ontario: C$103 million for the forestry industry specifically

 

 

Ontario Sawmill Chip Support Program: In September 2025, the GOO announced a $10 million increase in funding for Ontario Sawmill Chip Support program to help sawmills find “new, innovative markets for their wood chips.”  (https://www.northernontariobusiness.com/industry-news/forestry/ottawa-must-turn-talk-into-action-to-save-forestry-says-ontario-associate-minister-11270907)

 

 

 

  • Northern Ontario Heritage Fund Corporation (NOHFC) Funding: In February 2026, the GOO announced that it was investing $1 million through the NOHFC “to help Kirkland Lake Forest Products install advanced manufacturing equipment at its mill in Kenogami.”  This funding aims to “increase {the mill’s} competitiveness, boost productivity and protect the forestry sector,” and further explains that this funding comes “{a}t a time when U.S. tariffs are putting a strain on norther industries.” (https://nohfc.ca/ontario-investing-1-million-to-upgrade-lumber-mill-in-kenogami/)

 

 

 

Quebec: C$80 million for the forestry sector specifically

 

 

  • Annual Royalty Fee for Sawmills Dropped: In February 2026, the GOQ announced that it will “hold a ‘mini-reform’ of the province’s forest regime to provide relief for sawmills and other businesses pressured by cumulative U.S. tariffs.”  In doing so, the GOQ stated that it would “abolish the annual sawmill royalty – a move {the government} estimates will return roughly $20 million a year to the sector.” (https://www.cbc.ca/news/canada/montreal/quebec-forest-regime-mini-reform-9.7104351)

 

  • Working Capital Assistance Program: In March 2026, the GOQ announced that its Budget 2026-207 Plan includes providing $60 million “for a working capital assistance program for wood processing businesses that will undertake investment projects to support their growth and adaptation.”  The GOQ further explains that this “{g}overnment support for wood processing businesses, particularly sawmills, which are an essential link for the forestry sector, will benefit all workers in the sector.”   (https://www.finances.gouv.qc.ca/Budget_and_update/budget/documents/Budget2627_BudgetPlan.pdf#page=44)

 

  • Temporary Holiday from Contributions to Health Services Fund: In March 2026, the GOQ announced that its Budget 2026-207 Plan that, effective January 1, 2026, the agricultural, fishing, and forestry sectors will benefit from a two-year temporary holiday from contributions to the province’s Health Services Fund, which “enables them to free up liquidity that is essential for their ongoing operations, and helps keep workers employed.”  It appears that this exemption will result in $129 million savings for the forestry sector.  (https://www.finances.gouv.qc.ca/Budget_and_update/budget/documents/Budget2627_BudgetPlan.pdf#page=44) 

 

Saskatchewan

 

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