Canadian Prime Minister Carney signaled that Canada may hold off on further retaliation against US President Trump’s latest trade measures, calling them “relatively modest”. The comments came two days after Washington escalated the ongoing trade dispute by banning some Canadian dairy products and motorcycles and most alcoholic beverages after the Canadian retaliatory tariffs took effect. Trump also moved to shut Canadian products out of large, long-term US government contracts. Carney acknowledged they could have significant consequences for individual companies and industries. But he noted that some of the new US tariffs replaced others that Washington had removed. …Derek Holt, with Scotiabank, said the US measures looked more like an attempt by Trump to “save face” than a major escalation. …Carney also said he remains in regular contact with Trump and had spoken with him “a couple of times” in recent days about Ukraine, Iran and other global developments.
Related coverage in:
- CBC News: Poilievre tells US that Canadians are wounded and confused.
- Deseret News: The Canadian trade war will not end well for either party
- NPR: These Michigan voters are bracing for higher prices from trade war
- Public Policy Forum: Canada needs more than new trade agreements
- Business in Vancouver: EU envoy says a ‘unique’ new partnership with Canada forming
BC Premier David Eby invoked the memory of the 9/11 terrorist attacks and Canadian efforts to help their “closest friend” as he voiced support for Ottawa’s counter tariffs on the United States. …”Nobody wanted this trade war. Canadians sure didn’t start it,” he said. …The forestry sector and those who depend on it are already hurting, he said, promising to work with the industry directly. Eby said his government would also protect public services, though his pledge comes as the current forecast projects a record-setting deficit of $13.3B… adding it was “appalling” that it was cheaper for Russian lumber to get into the American market than it was for lumber from BC. …Eby also unveiled plans for new signs at border crossings bearing a message saying welcome to BC, Canada: “strong, proud and will never be the 51st state. Sorry!” He said the message was one of confidence and good humour.
Prime Minister Carney will convene his cabinet today in Banff, Alta., a day after US President Trump claimed Canada is “dying” to make a trade deal. Both countries have imposed levies on a wide range of imported goods. Canadian counter-tariffs, which went into effect on Tuesday in response to American levies, cover $27.6 billion in American steel, dairy, paper, and other goods. The same day, U.S. President Donald Trump signed a flurry of executive orders, barring a series of Canadian imports to the U.S. outright, including motorcycles, booze and whey. He has also signed an order to rename Lake Ontario to “Lake America,” criticized Canada’s relative lower dollar, and posted a series of memes – one which called Carney “governor,” and another depicting Canada and Greenland under an American flag. …Canada will scale back environmental review for major energy projects. …Conservative Leader Pierre Poilievre heads to Washington. …Democrats call Trump’s trade offensive “pointless”.
President Trump responded to new tariffs on U.S. exports Tuesday by announcing bans on U.S. imports of Canadian motorcycles, dairy products and alcohol, and directed officials to restrict Canadian access to U.S. procurement programs. From Sept. 29, these Canadian exports will no longer be permitted to enter the U.S. market, according to
Ottawa will pay BC consultant Forest Economics Advisors LLC of Port Coquitlam, $84,000 to identify five countries that could buy more Canadian softwood lumber, nearly a year after Prime Minister Carney announced a $1.2 billion plan to diversify the industry away from the US market. …The consultant will be tasked with estimating how much Canadian lumber could realistically be sold in each prospective market and how quickly exports could grow. The study will also examine demand forecasts, international trade patterns and transportation costs. Natural Resources additionally wants the consultant to calculate how much money Canadian sawmills would have to spend retooling their facilities to manufacture products suitable for the identified markets. “The department is seeking a comprehensive analysis that identifies likely offshore growth markets for softwood lumber demand and evaluates Canada’s ability to compete in and sell to those markets,” said the contract notice. The final report is due Jan. 29.
The first Monday in September has been an official holiday in Canada since 1894, and in the United States since 1892. But the origin of Labour Day came 20 years before that, when unions started holding parades and rallies in Toronto and Ottawa to celebrate the successful 1872 Toronto printers’ strike – that won the decriminalization of unions in Canada. …the origins of Labour Day come from the struggles of working people and the demand for fairness. In this case, it was the movement to establish a 9-hour work day (the standard was a 12-hour work day and a 6-day work week) and a strike by printers in Toronto in the spring of 1872 to get it. …In 1882, an American labour leader witnessed the annual May “labour day” festivities in Toronto which inspired him to organize the first American “labor day” on September 5 that same year. …In Canada, pressure had been mounting to declare a national labour holiday. On July 23, 1894 the government of Prime Minister John Thompson passed a law making Labour Day official.
Unions and labour activists from across Canada, Mexico and the United States are united in their demand that stronger protections for workers’ rights must be included in any new trade deal negotiated between the governments. Multinational corporations continue to pit workers against each other in a race to the bottom across the three countries. Pro-employer protection unions remain prevalent in Mexico, obstructing the ability of workers to organize and collectively improve their conditions. The rights of workers to freely form unions and negotiate with their employers continue to be routinely violated, despite the provisions of the Labour Chapter of the Canada-United States- Mexico Agreement (CUSMA). …On behalf of workers across Canada, Mexico and the United States, we call on our governments to ensure that trade in North America raises standards for employment and working conditions in all three countries.
The complete index of American products subject to Canadian retaliatory tariffs on September 8 include more than 600 different entries. Searching for patterns can drive you to madness. Butterfly nets will be hit with a 50 percent tariff. So will eye make-up preparations and fish egg incubators. …When asked about the decision-making process, industry minister Mélanie Joly said some goods are meant to hurt Trump-supporting states, though she declined to say which. …States with Republican senators, such as Maine, Ohio, Michigan, Iowa, and Texas, all have substantive trade relationships with Canada—and are considered possible battleground states. Some experts are calling the issue “a political trap for Republicans,” with Democrats already seizing on the matter as a talking point. Here’s a look at some of the red states vulnerable to Canada’s new round of tariffs and the industries that may feel the most hardship.

The more the United States undertakes comprehensive efforts to reduce its vulnerability to Chinese economic coercion, the more important it becomes for Canada and Mexico to align their own policies. Misaligned tariff rates across the three countries incentivize the transshipment of Chinese goods to U.S. consumers. …Fundamental differences among the three countries allow for specialization based on what workers and companies in each do best. …Trump’s 2025 and 2026 tariffs pursued too many contradictory objectives. Beijing’s economic coercion clarified the most important task: to quickly create new sources of supply outside China. The ongoing USMCA negotiations present a political opportunity to pursue that objective by better aligning the countries’ tariff policies along three dimensions. …Then, Canada and Mexico need to raise some of their tariffs on China. …The most immediate need is for the Trump administration to stop implementing policies and circulating rhetoric that undermine North American unity.
A Chemainus company is getting a $2-million boost from the province to expand its operations and create new jobs, amid punishing duties and tariffs from the U.S. Ron Anderson & Sons, which makes prefabricated wall systems, plans to diversify its product line to include prefabricated floors, roof panels and stairs for builders, creating about 35 new jobs. “With the US targeting our manufacturing industries, it has never been more important to help local businesses like Ron Anderson & Sons sell more of what they make here at home,” Adrian Dix, acting minister of jobs said Wednesday. Ron Anderson & Sons says it has already invested in advanced manufacturing equipment, hiring of 20 new employees. Jack Downing, CEO, said the government funding will help the company expand its capacity and invest in advanced automation. …Forests Minister Ravi Parmar said that amid “economic attacks” from the U.S., the province is unlocking the full value of BC wood.
VANCOUVER – British Columbia forestry groups have written to Premier David Eby saying the industry is at a “breaking point” and calling for urgent action to address challenges ranging from slow-moving provincial processes to steep U.S. tariffs. The letter dated Sept. 4 said the entire industry is at risk, from logging and transportation to pulp and paper and value-added manufacturing. “…Government must respond with the urgency that crisis demands,” said the letter from contractors, manufacturers, unions and others linked to the sector. …But other challenges are “homegrown,” it said. The province “can control many of the costs, regulations, policies, permitting processes and fibre-access decisions that determine whether those companies survive it,” the letter said. …Eddie Petryshen, with Wildsight, said the “falldown” of the forest industry has been predicted — and ignored — for decades. …Parmar highlighted the province’s plan to shift to a “working forest” model, saying that it would address concerns the industry has been raising.
KAMLOOPS — Forestry stakeholders in British Columbia, from loggers to truckers, First Nations, unions and specialty groups have signed an open letter to Premier David Eby demanding immediate action on the forest sector. Pulp is the main game for forestry in Kamloops, with the Kruger mill employing hundreds in the community either directly or indirectly. U.S. Section 338 tariffs are expanding, expected to hit the pulp sector. “Unlike lumber, the tariffs aren’t as dramatic of a direct hit because we sell about 90 per cent of our pulp offshore, not to the United States,” said Joe Nemeth from the B.C. Pulp and Paper Coalition. …Kamloops MLA and forest critic Ward Stamer was in favour of the actions outlined, highlighting the need for a quick response from government to save the sinking industry. …Solutions around permitting and increasing allowable cut, some of the quicker changes the province could enact. Without that change, Nemeth is worried for the future.

Oliver, BC — The Osoyoos Indian Band (OIB) and the Gorman Group, through Similkameen Forest Products Ltd. (SFP), signed a partnership agreement on July 20, 2026, that gives the OIB a direct role in the planning and management of Tree Farm Licence (TFL) 59. TFL 59 is located east of Oliver within the OIB’s traditional territory. It is a long-term tree farm licence that provides the holder of the licence the opportunity to manage a defined forest area, and it has been held and managed by SFP. Through its forestry company, Nk’Mip Forestry LLP (Nk’Mip), the agreement means that the OIB will now be involved in the management work from the beginning of the forest planning process.


CHAPLEAU — The Ontario government is building a strong and self-reliant economy by investing over $17.3 million in four projects that will modernize forest sector manufacturing, enhance the industry’s competitive advantage and strengthen forestry supply chains by using more mill by‑products and underused wood known as forest biomass. …This funding is part of the government’s plan to protect Ontario forestry workers in the face of recent U.S. tariff attacks by building a more resilient, innovative and diversified forest sector, ready to compete in global markets. …The Forest Sector Investment and Innovation Program and Forest Biomass Program investments will support four projects advancing the
A new chapter in the effort to better manage water around Western Forest Products’ Saltair sawmill is taking shape. The company is creating a new runoff filtering system designed to collect and control surface water from the mill and surrounding area before it can make its way beyond the site into Ladysmith Harbour. The rainwater and stormwater runoff interacting with fine woody materials and galvanized mill infrastructure will shortly all be directed into an almost natural setting. “We want to make sure all the rainwater runoff from our site is filtered and it’s going into the ocean clean,” said Tyler Fraser, production superintendent at the mill. “Prior to this project all the surface water went into the storm drains, which would then lead to an oil-water separator before the harbour.” …“We have an established constructed wetland up at Beaver Cove in Telegraph Cove that has worked perfectly,” said Ben Matthews, mill environmental regulatory manager for WFP.
Prince George city council voted to send a letter to the federal jobs minister asking her to extend temporary employment insurance program for forestry workers in response to the impending closure of Northwood Pulp Mill at its Monday, Aug. 31 meeting. A report written by intergovernmental relations senior advisor Annie Doran and submitted by Coun. Garth Frizzell in his role as chair of the Standing Committee on Intergovernmental Affairs said that in the wake of the ongoing U.S.-Canada trade war, the federal government instituted several temporary measures, including: Waiving the waiting period for all new claims; Suspending the allocation of separation earnings like vacation pay, severance pay and more; and Increasing the number of weeks that long-tenured workers can received benefits to a maximum of 20. These benefits were implemented on March 30, 2025 and are expected to end on Oct. 10, 2026.
Nanaimo is bracing for the impacts the implementation of the 50% tariffs on billions of dollars in Canadian goods that came into effect on Aug. 22 will have on the local business community. Julie Sperber, the new CEO of the Greater Nanaimo Chamber of Commerce said… it’s clear that many of the region’s forest companies are going to take a big hit. …“Companies like the Harmac Pacific pulp mill won’t be affected as much because much of their products go to Asia, but Coastland Wood Industries are feeling the impacts of US tariffs for the first time.” Secondary-wood products like veneer sheets have been explicitly targeted for the first time. Doug Pauze, president of Coastland, said the company has scaled back production. …Sperber said officials from Western Forest Products and Mosaic Forest Management have planned meetings with government members in Victoria to discuss strategies to deal with the tariffs.

The Member of Parliament for Cowichan-Malahat-Langford is calling on the federal government to explore how it could potentially use the Crofton mill. MP Jeff Kibble is floating the idea of it being used by the Department of National Defense. …On Friday, crews were loading logs onto a ship at its deep sea port. It’s one of the key assets of the property that has the region’s MP calling on Ottawa to consider the property’s purchase. “What I recommended is that the government immediately conduct a feasibility study to see if this is an opportunity to expand the base at Esquimalt. We know that the opportunity to have a deep water industrial site is rare and we also know that the navy is expanding rapidly,” said Kibble. Kibble served in the Royal Canadian Navy for 28 years. …When asked about Kibble’s proposal, Domtar said it’s “exploring a variety of possibilities for the future of the site”.
Two weeks until the 23rd Annual Global Buyers Mission in Whistler! At a time when trade barriers, transportation constraints, and rising operating costs are influencing how businesses plan and source, strong supplier–buyer relationships matter more than ever. GBM brings B.C.’s value-added wood manufacturers together with pre-qualified international buyers, distributors, and specifiers. From targeted B2B meetings and conversations on the tradeshow floor to networking receptions including the Women’s Networking Event, WoodTALKS seminars, and a few memorable Whistler moments along the way, GBM is designed to create connections that last well beyond the event. See you in Whistler, September 10-12!
Osoyoos, British Columbia — September 21–22, 2026 Every industry has its acronyms. Few, however, land quite like the one the Independent Lumber Manufacturers’ Association (ILMA) has chosen for its 2026 Annual Convention: WTF — Where’s The Fibre? It’s a cheeky title for a serious question. Fibre availability — the raw material that keeps sawmills running, communities employed, and Canada’s forest sector competitive — has become one of the defining challenges facing the industry. ILMA’s answer is to lean into the tension rather than tiptoe around it, gathering the people who can actually do something about the problem for two days of conversation, deal-making, and, yes, a little golf. The ILMA Annual Convention has built a reputation as one of Canada’s premier forestry networking events, and this year’s edition returns to Spirit Ridge Resort in Osoyoos, located on the traditional territory of the Osoyoos Indian Band. The ILMA’s convention is intentionally curated — bringing together company owners and senior executives from across the sector alongside government representatives, First Nations leaders, suppliers, consultants, and forestry professionals.





In this update, you’ll find these stories and more:
Washington businesses are bracing for the impact of Canadian tariffs on American goods. One of the state’s largest industries, lumber, is already feeling the pressure. One company says uncertainty over trade policy is raising the cost of imported materials, weakening demand, and making it harder to budget projects. Tariffs might be a short term thing, but the repercussions of them play out for years. Canada is Washington’s 2nd largest export market with more than $7 billion in goods shipped north of the border last year. Governor Bob Ferguson says exports have already topped $4 billion this year. [.5 min video]
BOISE, Idaho — Tensions between the US and its second-largest trade partner — and Idaho’s top partner — boiled over last month when President Trump lashed out at Canada with a slew of new tariffs. …Canadian officials said last week that they were “targeting” products that would affect certain states as they responded with tariffs of their own. …Idaho exports more goods to its northern neighbor than it does to its next six largest markets — Taiwan, Mexico, Singapore, Japan, China and Malaysia. Agricultural and food products are the state’s top exported goods, and Canada is the biggest market for them. …Wood, paper, pulp and printing products are also on the list of items facing 50% tariffs from both sides. …Idaho imports wood and paper products from Canada more than twice the amount it exports. …Trump’s new round of tariffs is another way to target Canadian wood, which this time affects different types of plywood.
Donald Trump this month announced plans to rescind a landmark rule that has protected old-growth forests in the US for 25 years. If finalized, the rollback is expected to benefit the companies that Tom Schultz, chief of the US Forest Service, represented in his previous roles as a timber industry lobbyist and executive, according to research by consumer advocacy non-profit Public Citizen. …In a statement, Schultz described the move as “the best way to restore the balance, reduce wildfire risk, and secure the long-term health of our forests and neighboring communities”. But studies suggest it could put 400 threatened and endangered species at risk. …[Schultz previously] served as president of the Federal Forest Resource Coalition, representing companies that purchase timber from the federal government, and was vice-president … at Idaho Forest Group, a major lumber manufacturer. Schultz has long been critical of the roadless rule. 
There has been significant recent conversation about Canadian tariffs on many products, more specifically timber. This matters to Mississippi because timber is one of our state’s most important agricultural and economic commodities. Over 80% of the timber in Mississippi is privately owned. In 2003, Senator Thad Cochran warned: “Canada subsidizes its lumber mills by subsidizing the cost of stumpage price for pine timber, and those mills are dumping lumber in our domestic market.” The issue remains the same today. Most of the timber in Canada is owned by their government. The various provinces set the price at the stump. Most are significantly lower than the price paid here to private landowners. …This issue continues today to be challenged in various courts. …That is why Senator Cochran was right. And we need to support a final resolution by President Trump which provides us a fair ability to compete with this valuable Mississippi commodity.

Maine Gov. Janet Mills says tariffs on lumber products have been difficult for the state’s economy to absorb. [CBC video 1.42 min]


SAVANNAH, Georgia — The South, and Georgia in particular, have borne the brunt of a historic run of pulp and paper-mill closures as recycled boxes, cheap imported pulp and more thrifty packing by e-commerce giants, including Amazon.com, have hit demand. Last year, the US shed roughly 10% of its capacity to produce containerboard. …Demand for pulpwood plummeted. So did demand for wood chips, sawdust and other byproducts. Prices across the South are at the lowest level in nearly 40 years before factoring in inflation. In some parts, there’s essentially no market. Some growers are, for the first time, having to pay to have their pulpwood removed. …A search is on to create new sources of demand. Weyerhaeuser, the South’s largest timberland owner with about 6.6 million acres in 11 states, is spending hundreds of millions of dollars to build facilities in Arkansas and Mississippi to turn pulpwood surpluses into engineered lumber and an alternative to metallurgical coal, respectively. [to access the full story a WSJ subscription is required]
The Australian Government has announced a $150 million investment to support forestry industry growth, including funding aimed at transforming wood-product manufacturing and expanding domestic processing capabilities. Announced on 3 September, the funding will be delivered through five streams under the Forestry Growth Fund, with up to $85 million earmarked for large-scale investments in modern wood-product processing, value-adding and facilities designed to significantly transform manufacturing capabilities. A further $30 million will support innovation aimed at improving efficiency and productivity across the forestry supply chain, while up to $15 million will be allocated to workforce development. The government will also provide up to $15 million in additional support for plantation establishment to increase the supply of domestic forest resources for Australia’s manufacturing and construction needs. Another $5 million will fund tools to support compliance with illegal logging laws and reduce the risk of illegally logged or conflict timber entering supply chains.

