OTTAWA – The federal budget has zeroed in on business growth with a suite of tax measures and incentives designed to spur private-sector investment. The central business pitch of the 2026 budget tabled Thursday aims to encourage Canadian companies to invest more, expand and become more competitive internationally. The budget, entitled Masters of our Destiny, includes capital gains tax breaks, incentives for companies investing in equipment and expanded tax support for research and innovation. But some business leaders and groups said the budget falls short in addressing the needs of small businesses. …A centrepiece business measure in the budget is a new tax exemption on up to $15 million in capital gains from eligible investments in Canadian companies. …The budget also includes what the government calls “the most ambitious effort in decades” to simplify the tax system. …The budget lays out a three-pronged approach to creating what the government calls an “investment supercycle” with measures aimed at spurring investment, entrepreneurship and innovation.
Related coverage:
Government of Canada releases Budget 2026: Masters of our destiny: Canada has what the world wants and what it takes to chart our own course. That is how we can become maîtres chez nous: masters of our destiny.
Forest Products Association of Canada response to Budget 2026 and forthcoming Forest Sector Transformation Strategy: The federal government clearly understands the critical juncture our sector is at, and we look forward to seeing the full Forest Sector Transformation Strategy in the coming weeks.
The BC Truck Loggers Association welcomes historic federal investment in Canada’s forest sector: The $6.5-billion Forest Sector Transformation Strategy, building on $2.9 billion in previously announced support, represents an historic investment in an industry that employs nearly 200,000 Canadians, contributes billions to Canada’s GDP and supports hundreds of rural, remote and Indigenous communities across the country.
BC Council of Forest Industries Statement on Federal Budget 2026: We welcome the federal government’s commitment of $6.5 billion in new funding over six years to the forest sector in Budget 2026. The Strategy should prioritize reducing regulatory duplication, streamlining permitting and strengthening federal-provincial coordination to give operators and investors greater certainty. …These measures must complement provincial efforts to improve access to affordable wood supply and restore competitiveness across BC’s forest sector.
World Wildlife Fund Canada: Budget 2026 – We can’t build a stronger country while losing the nature that makes us strong
Donald Trump was rebuked by tariff-weary voters in midterm elections, but one of the US president’s main targets — Canada — still faces a dilemma about what to do next. The trade war became a problem for Republicans in northern battleground states. …Late in the election campaign, Trump said several times that he expected to have a deal with Canada soon to reduce trade frictions. …With Democrats set to take control of the House and Senate, Trump’s ability to pass laws and appointments will be constrained. But he can continue to sidestep Congress and issue executive orders. …House Minority Leader Hakeem Jeffries promised the Democrats would pass a bill to “stop the stupid Trump tariffs jacking up prices on Americans.” But Trump has the power to veto such legislation. … “I don’t think they’re prepared to concede too much on the core issue,” said Barry Appleton, of the New York Law School Center for International Law.
A thumping, a shellacking, maybe even a disaster. …The Democrats will take control of both the House and the Senate. …Voters clearly sent a message that they are angry about the Republican president’s failure to deliver on his promise of lowering prices, punishing him in particular for pursuing the war in Iran and for launching his tariff regime. …Canadians have been paying much more attention than usual, in large part because of the potential impact on how Trump deals with the country that he keeps threatening to make the 51st state. Federal and provincial government officials have quietly been hoping a Republican spanking in the midterms would give Canada more leverage in trade talks with the Trump administration. …Democrats signalled they would act quickly to advance legislation. Among their targets: restoring the health insurance subsidies, taking down Trump’s tariffs and blocking authorization for the war against Iran.
Canadian pulp producer 
MONTREAL — The European Union and Canada have agreed to build the closest possible relationship. Over the next six months, they will have to define what that means — and whether Canada can become the EU’s first, and perhaps only, associate member. A summit in Montreal last week highlighted the urgency behind the budding relationship. Both sides say their partnership is positive and not directed against any country. But it is also driven by mutual need: to shore up supply chains, pool expertise and reduce reliance on the United States and China. Mark Carney told POLITICO in an interview that the two sides should not be tailoring their partnership to cope with the potential reactions of other powers. …
The U.S. will remove its 50% tariff on certain Canadian thin hardwood plywood, corrugated boxes and coated paperboard from October 30 while imposing the same duty on Canadian thin MDF, hardboard, wood moldings, engineered flooring and kraft paper, according to a 
FORT KENT, Maine — In the heat of US midterm elections, President Donald Trump’s tariffs on Canada — and Ottawa’s retaliation — have taken center stage in timber-producing Maine, walloped by the economic fallout perhaps more than any other state. Residents in Maine’s frontier towns express worry that the tariffs have also triggered a rupture in cross-border relationships built up over decades, and that the intricate community fabric could take years to repair. …Maine is reluctantly on the front lines of the trade war. …Many logging operations in the nation’s most heavily-forested state are suffering, and cross-border tourism has tanked. Households already struggling with fuel prices are seeing costs of living soar, an issue dominating the midterms. …For two centuries, Canadian mills near Maine have processed vast amounts of its timber. …Not all Maine loggers are upset. Pleasant River Lumber Company aims to expand production.
OTTAWA – Multiple government and industry sources close to trade discussions between Canada and the United States said the momentum of the talks, just recently re-started in earnest, combined with US President Trump’s political vulnerabilities ahead of the midterms leads them to believe there is considerable appetite to strike a deal with Canada. All the sources cautioned an agreement of any sort was far from certain given the past behaviour of Trump and his trade delegates. But, over the last week the White House has shown much more interest in arriving at an agreement “than in all the weeks prior,” according to one of the sources. …Two sources described intense talks over the weekend, that were “all consuming.” Another source with knowledge of talks on both sides of the border said things are moving. …White House economic adviser Kevin Hassett said the US was close to a deal with Canada.”
A piece of Tolko’s former mill site in Kelowna’s North End has been expropriated by FortisBC, and Tolko is unhappy with the compensation they received. Tolko Industries filed a notice of civil claim against FortisBC, alleging the $7.41 million the utility handed over for a two-acre parcel of land wasn’t enough. Fortis plans to construct a new electrical substation at the site. The long-running Tolko mill 
The federal budget handed down on Thursday includes funding pledges that are expected to benefit British Columbia. Here’s a look at some of them. The budget is proposing $6.5 billion in funding to support the forestry sector nationally over six years. It doesn’t provide a province-by-province breakdown, although it points out that B.C. accounts for 29% of the national forest sector’s GDP, representing the biggest share in Canada. There’s $4 billion for a new “forestry sector accelerator” to make investments in large facilities and major transformations of existing facilities, “including biorefineries, biofuel facilities, and other facilities producing higher-value and innovative forest products.” A further $2 billion is to help businesses in the forest sector modernize and expand, while $500 million goes towards strengthening fibre supply chains and supporting forest management. …The budget announces a $64-million loan guarantee to support the Tla’amin Nation acquiring 100% ownership of Western Forest Products’ Stillwater Forest Operation.
We’ve had final investment decisions on LNG Canada Phase 2, the Pacific Link pipeline formally designated a project of national interest, and a snap provincial election. These big announcements have overshadowed some smaller good news stories over the past few weeks. …Domtar, it appears, has managed to secure some kind of fibre supply with the provincial government. Details are sketchy, however, because neither Domtar nor the Ministry of Forests bothered to put out press releases on the development. …Another bit of good news in forestry is that Gillfor Manufacturing, a B.C. wood products manufacturing and distribution company, will salvage what is left of Teal Jones, which includes three mills in Surrey and Tree Farm License 46. “The plan is to restart that shake and shingle mill eventually. The other two sawmills will continue to be operated on a two-shift basis, provided there is ample log supply. 
American importers of Chinese fence pickets could be paying duties from January, with the 
ST CATHERINES, Ontario — Alain Ouzilleau spent 40 years building Cabico into one of Canada’s biggest kitchen cabinet makers. …U.S. tariffs on Canadian kitchen cabinets are set to double to 50% on Jan. 1, threatening thousands of small manufacturers that employ almost 25,000 people, Ouzilleau said. The kitchen cabinet industry is part of the broader softwood lumber sector, among the main industries hit by U.S. tariffs, alongside steel, aluminum and automotive manufacturing. The industry is highly fragmented, comprising thousands of small, labour-intensive companies that are particularly vulnerable to rising costs and falling orders, and has shed more than 10 per cent of its workforce since Trump first imposed tariffs. …While Canada’s economy has avoided mass layoffs and grown modestly despite U.S. tariffs, the uncertainty has wreaked havoc on small businesses. Furniture makers were already struggling with an influx of cheap Chinese products, according to interviews with three wood product manufacturers.
Improving mill performance does not always require a new production line. Across the United States, pulp and paper mills have achieved significant savings and operational improvements by upgrading existing equipment, refining processes and making better use of production data.
The U.S. Department of Commerce has formally amended its 2017 countervailing duty determination on Canadian softwood lumber, following the conclusion of a nine-year NAFTA binational panel review. The panel affirmed Commerce’s revised determination on October 5, 2026, with final panel action issued October 19. The amended subsidy rates include reductions for Canfor (13.24% to 12.49%), J.D. Irving (3.34% to 2.96%), Resolute (14.70% to 13.90%), Tolko (14.85% to 11.01%) and West Fraser (17.99% to 16.73%). The all-others rate falls from 14.19% to 12.80%. However, Commerce states that the changes will not affect current cash deposit rates for the five named producers, as subsequent administrative reviews have established superseding rates. Revised deposit instructions will be issued for other companies without superseding rates.
West Fraser announced that it will indefinitely curtail its Huguley OSB mill in Lanett, Alabama and lumber mill in Leola, Arkansas. These curtailments are expected to take effect in the fourth quarter following orderly wind-downs. These decisions are the result of continued weakness in demand for wood products used in new home construction and repair and renovation applications. …Sean McLaren, West Fraser’s CEO, “We were also impacted by higher energy-related input costs. Our teams responded by running mills to demand, reducing inventory and controlling costs. …These actions are expected to reduce West Fraser’s OSB capacity by 500 million square feet (3/8-inch) and SYP capacity by 225 million board feet, both on an annual basis. This action reflects the challenging market conditions facing our business and is not a reflection of the dedication and performance of our employees at Huguley and Leola.
The U.S. Department of Commerce is seeking public comment on subsidies, including stumpage subsidies, provided by countries exporting softwood lumber or softwood lumber products to the United States between January 1 and June 30, 2026. Under the Softwood Lumber Act of 2008, Commerce is required to report to Congress every 180 days on subsidies provided by lumber-exporting countries. Comments are due November 30, 2026.
U.S. lawmakers Andrea Salinas and 
West Fraser Timber said it will “indefinitely curtail” its lumber mill in Leola in Grant County this quarter and will also close a mill in Lanett, Alabama. …West Fraser said the Leola mill employs about 100 people and that it is focused on supporting them, including exploring opportunities to relocate to other West Fraser operations. …The mill closures in Arkansas and Alabama will allow the company to ramp up production at a replacement lumber facility in east Texas, company representatives said. …Last year, West Fraser permanently closed lumber mills in Huttig, in Union County, and Lake Butler, Florida. …West Fraser Chief Financial Officer and Executive VP Chris Virostek said the company has been affected by higher costs. …The company is managing the effects of higher costs on a mill-by-mill basis and have reduced logging operations in some areas in response to the higher costs, Virostek said.
VIETNAM — Standing Deputy Prime Minister Pham Gia Tuc has just approved the Strategy for the Development of the Paper Industry for the period up to 2030, with a vision to 2045. The overall strategy aims to develop Vietnam’s paper industry, meeting all domestic consumption and production needs; and to boost exports of products with competitive advantages. …By 2030 , the paper industry aims to achieve an average annual growth rate of 10% or more in paper and pulp production, meeting domestic demand and targeting exports, reducing imbalances and dependence on imports; and an average annual increase of at least 4.0% in export turnover during the period up to 2030. …Businesses are encouraged to invest in 5 to 10 new paper mills with a capacity of over 250,000 tons of paper per year; 2 to 5 pulp mills with a capacity of 200,000 tons of pulp per year or more; and 2 to 5 high-quality paper mills requiring advanced technology.
Brazil’s pulp industry faces mounting trade pressures as US tariffs affect selected pulp grades, new US trade-duty proceedings target high-purity dissolving pulp, and the European Union prepares to apply its deforestation regulation. The challenges come as Brazilian pulp exports declined in the first half of 2026. …The United States introduced an additional 25% Section 301 tariff on specified Brazilian goods, effective July 22, 2026. Most wood pulp products were exempted from the additional tariff, but high-purity dissolving pulp was excluded from the exemptions. …Separately, on October 13, the US Department of Commerce announced final affirmative determinations in anti-dumping investigations into high-purity dissolving pulp from Brazil and Norway, as well as a countervailing duty investigation into Brazilian imports. …The European Union’s Deforestation Regulation (EUDR) is scheduled to begin applying to large and medium-sized operators on December 30, 2026. …For Brazilian pulp producers exporting to Europe, compliance will require appropriate supply-chain traceability and documentation.
