James Furney, mayor of Port McNeill, BC… is trying to stay upbeat, but his lumber town was already suffering before the threat of Trump’s trade war. …“To think that anyone is going to be insulated from what is going on with Trump would be delusional,” Furney said. “We are a forestry town and people around town are already watching their wallets and curtailing their spending, and businesses that should be ramping up now to hire summer students aren’t going to be hiring.” …In short, B.C. has plenty of wood and plenty of potential buyers for it, especially in the US, which was a $5.69-billion export market for the province in 2024, but not enough of that wood has been getting cut in recent years. That makes for gloomy days on the West Coast; a malaise that could spread to Ontario and Quebec and push the industry to the brink of collapse.
The BC Lumber Trade Council is warning that threatened US tariffs stacked on top of duties against Canadian softwood could lead to soaring costs for residential construction, including in American states seeking to rebuild after natural disasters. Hurricane Helene damaged or destroyed an estimated 73,000 homes in North Carolina last fall, and wildfires burned more than 15,000 structures in California in January, the BC council said in a submission this month to the US Department of Commerce. “Significant hurricane reconstruction efforts are also underway in Florida, Georgia, South Carolina, Virginia and Tennessee,” the council’s 55-page filing says. The submission was a response to a March 1 executive order… which also threatened new lumber tariffs, cited Section 232 of the Trade Expansion Act, allowing him to connect the softwood file with national security. The probe into softwood and other wood products is scheduled to be completed by the end of this year. [to access the full story a Globe and Mail subscription is required]
A coalition representing part of the US lumber industry is firing a shot at BC’s Forests Minister, who has suggested the State-side industry is not willing to engage. “
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.
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.
Sweeping new tariffs announced by Donald Trump provoked dismay, threats of countermeasures and urgent calls for talks to find ways to rescind the stiff new import taxes imposed on goods from countries around the globe. …Trump maintains they will draw factories and jobs back to the United States. …European Commission President Ursula von der Leyen said it was a “major blow to the world economy.” …British Prime Minister Kier Starmer said he hopes to get the tariffs lifted with a trade deal. …Financial markets were jolted. …China’s Commerce Ministry said Beijing would “resolutely take countermeasures to safeguard its own rights and interests,” without saying exactly what it might do. …Mexican President Claudia Sheinbaum said she would wait to see how Trump’s announcement will affect Mexico, which like Canada was spared for goods already qualified under their free trade agreement with the United States, though previously announced 25% tariffs on auto imports took effect Thursday.
As of 2024 there are 2,500 sawmills in the U.S. and 850 in Canada. However, these numbers have to be looked at in context of housing starts in both countries. An interesting number: The rebuilding of 16,000 houses that burnt down in California require 4,300 fully loaded eight-axle trailer trucks with dimensioned lumber. We must be innovative and need more skilled workers. We should have a few smaller mills and/or machinery producing metric size timber for Europe and Japan. …We cannot change what is happening in the US, but despite an executive order from higher up, many mills in the US are suffering from a steady lack of timber supply and do not have the manpower or loggers required to steadily feed some of the mills. In Montana for example, 36 mills have closed over the last years because of a lack of timber supply, as well as a lack of loggers.
At the Council of Forest Industries convention, Premier David Eby underscored the provincial government’s commitment to forestry as a major project — and made it clear that forestry will be treated with the same focus and urgency, saying, “This is a shared project that we can get to that 45 million (cubic metre) target, which we all know is absolutely essential.” …Eby’s commitment to a “whole of government” approach is exactly what the sector needs. …We applaud Forest Minister Ravi Parmar’s recent announcements… Equally important is ensuring BCTS delivers its full potential. Consistently hitting 90 per cent or more of its annual harvest target is critical to a thriving wood products industry that supports communities and workers throughout the province. We also can’t lose sight of reconciliation. Increasing the distribution of stumpage fees to First Nations is one achievable step that would help advance shared prosperity and strengthen Indigenous participation in the sector.
An appeal contesting a 12-month notice period awarded to an operations specialist who had been recruited from a long-term, secure position 
By raising duties on Canadian lumber, the United States is contending that the producers benefit from unfair subsidies and sell products below market value. However, British Columbia Premier David Eby called it an “attack on forest workers and British Columbians” on April 5. …Harry Nelson, an associate professor of forestry at the University of British Columbia, said the increase stems from Washington’s annual review of its trade remedy findings. “The main reason for the significant increase is that both rates went up, the antidumping especially so.” …Nelson said some companies such as Canfor face a nearly 50 percent tariff and could be unsustainable. “Lumber margins tend to be small — certainly not 50 percent, and it is hard to imagine how Canfor will be able to continue to operate,” he said. “I would expect a curtailment in production, where higher-cost firms may either take temporary downtime or permanently shutter some more mills.”
When forestry contractor Mike Egli heard the sawmill in Vanderhoof was closing, he was expecting the worst. Egli co-owns logging contractor Dalchako Transport with his brothers. As with many local forestry companies, Dalchako’s livelihood was tied to the Plateau sawmill, Vanderhoof’s largest employer. With more than 200 workers, the sawmill was integral to the local economy. It closed at the end of December 2024. Egli has found other contracts to keep working since December, but the mill’s closure has caused a massive upheaval. “We lost all that work there,” he said. …Meanwhile, workers in Vanderhoof are looking to other industries to make a living. It’s a shift many northern B.C. workers have had to make before. …Not all workers are leaving the industry. Mayor Moutray said local forestry contractors are commuting 200 kilometres to Quesnel, B.C., for work, or flying into remote work camps to stay in forestry.
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.
Developer Greg Drobot hope to sell the houses they’re building in Coos Bay for around $400,000. …Keeping costs down means paying attention to the price for every detail. Drobot said instead of plywood, the project was going to use a less-expensive oriented strand board from Canada. “When the tariffs hit, it made it almost cost-prohibitive for us to use that,” Drobot said. …Tariffs are almost certain to put Oregon’s new home construction goal further out of reach. Imported 
As tariffs reshape supply chains, more Americans may be checking packaging for the “Made in USA” label, either to sidestep import taxes or to support domestic businesses. …According to the Federal Trade Commission, to qualify for the label, US authorities must determine that a product’s final assembly or processing has taken place in the US, and that a significant portion of its manufacturing costs must also be incurred domestically. …That said, some foreign components are allowed to still qualify as “Made in USA.” — as long as they don’t substantially transform the product. …However, bilateral trade agreements can override these rules. Under the United States-Mexico-Canada Agreement, a one-time importation of a commercial product valued under $2,500 is exempt from country of origin labeling requirements.
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.”
Once Oregon’s largest manufacturing industry, employment in the wood product manufacturing industry has gone through large, well-publicized losses since the early 1990s. Its employment has dropped below that of computer and electronic manufacturing and food manufacturing in recent years, but it remains the third largest manufacturing industry. Despite the losses, wood product manufacturing is still a large industry in Oregon and is especially important to rural areas of the state. Over the long term, between 1990 and 2020, annual average employment in wood product manufacturing dropped 24,100, or 52%. Similar losses were experienced in all its subsectors. Sawmills and wood preservation dropped 5,900 (49%); plywood and engineered wood products dropped 9,500 (53%). …Even with the long-term decline, wood product manufacturing is still a large industry in Oregon. In 2024, there were 22,400 jobs and roughly $1.5 billion in total payroll in the industry. 
President Donald Trump is prepared to impose tariffs on many Canadian products that are shipped to the United States. Included on the list of tariffs are the wood products industry, which is facing a 25 percent tariff on products shipped south of the border. In response to the President’s actions, the Vermont House Committee on Agriculture and Forestry took testimony from two employees at the Agency of Natural Resources last week… In the past two years Vermont has lost two sawmills, becoming more reliant on Canada. Vermont imported $52 million in sawmill and wood products from Canada in 2024. Pierson said some of the wood was shipped from Vermont to Canada where it was processed and shipped south.
Tariffs could impact efforts to rebuild a former paper mill in Jay that was destroyed in an explosion almost five years ago. Godfrey Wood Products is looking to build a new factory on the property that would manufacture oriented strand board, a type of structural wood paneling. The company says that they have all of the permits they need, but they haven’t been able to move forward with construction because of uncertainty with tariffs. A lot of the equipment they need would come from Europe. “The stated goal of all of this tariff business is to, incentivize domestic manufacturing. Well, hell, I’m trying my level best to become a domestic manufacturer of OSB in Jay, Maine, and it seems like the public policy of the country is trying to thwart that,” said John Godfrey, owner of Godfrey Wood Products.
London—President Donald Trump’s unpredictable tariff policy and countermeasures by America’s trading partners will likely deal a heavy blow to economies worldwide, with US prosperity hit particularly hard, the International Monetary Fund warned Tuesday. Global economic growth will slow to 2.8% this year, from 3.3% last year and significantly below the historical average, the IMF forecast in its World Economic Outlook. The slowdown expected in the United States is even steeper, with its economy likely to grow only 1.8% in 2025, compared with a 2.8% expansion in 2024. Both predictions are more pessimistic than the fund’s January projections, which came before Trump’s flurry of tariff announcements took America’s average import tax to its highest level in a century. …North America, just like all regions, can’t expect any upside from the tariffs further down the line. “The long-term impact of the tariffs, if they are maintained, (will be) negative for all regions, just like the short-term impacts,” Gourinchas said.
