WASHINGTON — Since 2016, Canada’s excess lumber capacity has surged…[and] the Canadian industry is directing its excess lumber capacity and production to the US market. The impact on US lumber producers, workers, and forestry dependent communities has been devastating. “BC Premier Eby’s claim that US trade law enforcement is an attack on Canadian workers is entirely backwards,” stated Zoltan van Heyningen. “Canadian violations of US trade laws are an attack on US workers, US companies, and President Trump’s goals to further increase US lumber production.”,”Canada and their US allies, the NAHB, are engaged in a massive misinformation campaign trying to scare the American public into accepting Canada’s unfair trade practices,” added van Heyningen. “Let’s face it, Canada does not care about the U.S. consumer. …Canadian companies pay the duties imposed at the border on softwood lumber imports, not the US consumer or U.S. taxpayer”.
WASHINGTON — U.S. President Donald Trump partially reversed course Wednesday on his global trade war following days of market turmoil — but he’s not offering any changes to the tariffs hitting Canada. Trump immediately paused for 90 days the levies on nations slapped with the highest duties under his “reciprocal” tariff regime. A White House official later clarified that a 10 per cent baseline tariff will remain in place for all countries. The president has held fast to his plan to rapidly realign global trade through a benchmark “reciprocal” tariff — but his tariffs have spread chaos throughout global markets. …On social media, Trump said he made the decision after more than 75 countries called his administration “to negotiate a solution.” Later at the White House, the president said he lowered the levies because “people were jumping a little bit out of line.” “They were getting yippy, you know,” Trump said. “They were getting a little bit yippy, a little bit afraid.”
American consumers could be paying more to build new homes after the U.S. announced it will more than double existing duties on Canadian softwood lumber. “In the end, the U.S. consumer ends up paying additional money,” Supply-Build Canada president said on Tuesday. “It is an extra cost that is being passed on to the U.S. consumer and that’s not an ideal situation when you are looking for housing affordability.” Claiming that the Canadian lumber industry is unfairly subsidized, the U.S. Department of Commerce announced Friday that it planned to hike duties on Canadian softwood lumber from 
BURNABY, BC – The United Steelworkers union (USW) District 3 and the USW Wood Council locals in BC applaud the approach of Premier Eby in fighting for workers and federal government supports in light of the announcement by the US Department of Commerce that will increase the current tariff and countervailing duty average to 34.45% from 14%. “The continual application of tariffs and duties by the US on our USW membership in Canada is wrong and unwarranted,” said USW District 3 Director Scott Lunny. “Premier’s Eby’s approach in pressing the federal government in Ottawa for worker supports is key.” …“The Trump administration and the U.S. Department of Commerce continue to be subjected to the influence of the US Softwood Lumber Coalition, wrongfully claiming the Canadian industry is subsidized,” said Jeff Bromley, USW Wood Council Chair. …“It’s protectionism, pure and simple,” added Bromley.
Canadian National train service employees represented by the Teamsters Canada Rail Conference will get a 3% annual raise under an arbitrator’s contract decision. Arbitrator William Kaplan released his decision Monday on the three-year contract, which runs from Jan. 1, 2024, through Dec. 31, 2026. When CN and the TCRC were unable to reach a negotiated settlement during their contract talks, the Canada Industrial Relations Board sent the matter to binding arbitration in August 2024 after a brief lockout. Kaplan urged the railway and union to iron out their differences regarding changes to work rules. “Both parties proposed detailed changes to work rules. And both parties described the proposals they sought as justified by demonstrated need, and the ones advanced by the other party as breakthroughs that would never be accepted in free collective bargaining,” Kaplan wrote.
Premier David Eby cautioned last week that BC should not make too much of the appearance that the country “dodged a bullet” in the latest round of tariff fire from the US. …Eby’s fears were borne out, when the US announced a plan to more than double the duty against Canadian softwood. …Eby told the legislature that Forests Ministry staff are “working on a proposal to defer stumpage.” The tariff threat likely means a setback for the ambitious goal that Eby set for the forest minister, Ravi Parmar. He directed Parmar to “work toward…a harvest of 45 million cubic metres per year”. The increase would be 50 per cent greater than last year’s 30 million cubic metres harvest, but still well short of the almost 60 million harvested the year the New Democrats took office. …Though the industry welcomed the premier’s target for increasing the harvest, it remains privately skeptical that the NDP can make the necessary changes in regulation and permitting to bring about the increase.
The US is set to more than double the duty it charges on softwood lumber imports from Canada, with the planned new rate set at 34.45%, up from the previous 14.54%. …New softwood lumber duties were long-feared amid the growing trade war between Canada and the US, and would be the latest blow to BC’s beleaguered forestry industry, which has seen thousands of workers laid off over the last few years. BC Premier David Eby condemned the planned duty hike as an “attack on forest workers and British Columbians” in a statement on Saturday. While Canada may have been spared additional tariffs from the US on Wednesday, anxiety around levies on BC’s softwood lumber industry remains high. …Under the U.S. Tariff Act, the Department of Commerce determines whether goods are being sold at less than fair value or if they’re benefiting from subsidies provided by foreign governments.
Canadian lumber has been left out of Trump’s tariff blitz, despite the president’s repeated threats to add to import taxes to a big chunk of US wood supply. Prices for two-by-fours are tumbling. Lumber futures contracts shed 8.7% to end at $606 per thousand board feet, the lowest price since mid February. They are on track for their worst day since the pandemic-era lumber bubble burst three years ago. Prices had risen this year in anticipation of another layer of import taxes. …That climb is unwinding. But the decline can also be chalked up to expectations that tariffs will push up residential construction prices and strain affordability. The tariffs Trump announced Wednesday will add about $6,400 to the cost of building an average house, UBS analyst John Lovallo estimates. That assumes that about 7% of the materials are imported and subject to an average tariff of 22%. [to access the full story a WSJ subscription is required]
MONTREAL — The notion that Canadian companies can simply switch supply chains in response to American tariffs is a fantasy, experts say. Businesses north of the border are looking elsewhere to source their material and sell their products. But companies caught up in tightly braided supply channels after decades of trade pacts and sector specialization may quickly bump into barriers around everything from transport and labour costs to resource availability, manufacturing capacity and market saturation. …Cancelling contracts with Canadian suppliers would trigger breakage fees of up to $500 million per U.S. factory, the group said. Many parts cross the border multiple times before final assembly. …Auto, lumber and steel producers would face some of the toughest challenges in the hunt for new markets, Paschen said. …Forestry players face an entirely different dilemma. Lumber exports, while ample, have a low value per volume compared to some other commodities.
AUDIO STORY: John Brink, CEO of Brink Forest Products, talks to host Gloria Macarenko about the economic potential for value-added wood products in B.C. and the impact of higher duties and tariffs from the U.S.
The United States has announced sweeping changes to encourage more logging in the country’s national forests. A new emergency order requires rolling back environmental protections on national forests… A big question for forestry economists is whether the U.S. is in need of significantly larger lumber production. …The forest products industry will only begin quickly cutting and milling more U.S. timber if there is demand, Jeff Reimer, an economics professor at Oregon State University said. Much of the lumber needs in the eastern part of the U.S. are met by private forests he said, that won’t be impacted by the new Forest Service requirements. But lumber in the west is almost all from Canada. …”Loggers and mills need to have …assurance that they can sell their products at a profit,” Reimer said. “If we see high inventories of unsold housing and low (weak) housing starts, then the demand for lumber is probably low.”
