OTTAWA — Canada’s exemption from Donald Trump’s global tariffs was “like dodging a bullet into the path of a tank”, say business leaders as other levies are poised to hit key industries that drive the country’s economy. …Canada was noticeably absent, alongside trade ally Mexico. Prime minister Mark Carney said 25% tariffs on Canadian steel and aluminum, as well as on automobiles, will come into effect within hours. Canada would “fight these measures with countermeasures” he said. Already, Canada had put a 25% tax on C$30bn worth of US goods in response to Trump’s tariffs. …Carney warned that while Trump had preserved key elements of the bilateral relationship, the global tariffs “fundamentally change the international trading system”. …On Wednesday, a bipartisan group of senators passed a resolution to end the national fentanyl emergency the president invoked to justify the 25% tax on Canadian imports. …House speaker Mike Johnson is unlikely to bring the measure to a vote.
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Democrats in the U.S. Senate are moving forward on a resolution to block sweeping tariffs targeting Canada as President Donald Trump presses Republican lawmakers to continue backing his trade agenda. Sen. Tim Kaine plans to force a vote on Trump’s use of the International Economic Emergency Powers Act, also called IEEPA, to declare an emergency over fentanyl trafficking to hit Canada with devastating duties. “The president has justified the imposition of these tariffs on, in my view, a made-up emergency,” Kaine said Tuesday. U.S. government data shows the volume of fentanyl seized at the northern border is tiny. The Annual Threat Assessment report, released last week, does not mention Canada in its section on illicit drugs and fentanyl. The vote will test whether Republican senators continue to back Trump’s tariffs on Canada — tariffs that, according to polling, are not supported by most Americans.
The United States is scheduled to unveil reciprocal tariffs on a wide array of trading partners, including Canada. Dubbed “Liberation Day” by Donald Trump, the measures are meant to even things out with those who, in Trump’s eyes, have unfairly taken advantage of the US with tariffs and other non-tariff barriers. …Aside from steel, aluminum and autos, which are already facing separate tariffs, here are the issues the U.S. has singled out as problematic in their trade with Canada that could factor in to the Liberation Day announcement, and what economists and trade officials have to say about them. What Trump says: He has lumped his anger about dairy and lumber tariffs together, threatening to act immediately on unfair treatment by Canada. He also said the U.S. does not need any Canadian lumber. Reality Check: There is far from enough lumber produced in the U.S. to meet building demand.
White House aides have drafted a proposal that would levy tariffs of roughly 20% on most imports, the Washington Post reported. The report cited three people familiar with the matter. It also said White House advisers cautioned that several options are still on the table, meaning the 20% tariffs may not come to pass. Another plan being considered is the country-by-country “reciprocal” approach, according to the Washington Post. The report comes a day before April 2, when President Donald Trump is set to announce his larger plans for global trade. The date has loomed over Wall Street, where stocks have been struggling in part due to uncertainty around rapidly changing global trade policy. Unlike the tariffs already announced by the Trump administration, the new plan is expected to be more widespread and permanent as opposed to targeting specific countries or industries. 
President Trump’s promised tariffs on softwood lumber risk disrupting the supply chain for something nobody wants to be caught without: toilet paper….While Trump advocates for new tariffs partly to bolster US manufacturing, they may also hit the availability of northern bleached softwood kraft pulp, or NBSK, a key component in making toilet paper and paper towels. NBSK constitutes about 30% of standard U.S. bathroom tissue and half of a typical paper towel, and is currently sourced primarily from Canada, said Brian McClay, chairman of TTOBMA. He added that the U.S. imported about 2 million tons of Canadian NBSK last year, highlighting the longstanding reliance of American paper-goods producers on pulp from their northern neighbour. …“If Canadian pulp mills close because they don’t have the fibre supply, I can’t think of any other option for them — they just can’t switch the recipe around,” he said. The scenario risks reviving painful memories of pandemic-era toilet paper shortages.
Yesterday, we featured Part II of our in-depth Q&A with political risk expert Robert McKellar, a follow-up to an August 
US President Donald Trump’s coming wave of tariffs is poised to be more targeted than the barrage he has threatened, aides and allies said. …The White House is narrowing its approach to take effect on April 2, likely omitting a set of industry-specific tariffs while applying reciprocal levies on a targeted set of nations that account for the bulk of foreign trade with the US. …The White House is still planning to unveil the reciprocal -tariff action on that day, though. …The fate of the sectoral tariffs, as well as tariffs on Canada and Mexico that Trump said were justified by fentanyl, remains uncertain. …The administration is now focusing on applying tariffs to about 15% of nations with persistent trade imbalances with the US… such as Australia, Brazil, Canada, China, the European Union, India, Japan, South Korea, Mexico, Russia, and Vietnam.
US builders pay a premium for the spruce, pine and fir (SPF) lumber that BC produces and could soon face additional tariffs after Trump’s proclamation that America doesn’t need the province’s wood. They like it, particularly for framing walls because SPF is lighter, stronger and tighter-grained than the more abundant southern yellow pine lumber that has a reputation for warping. …“There’s just this gap between what the U.S. can supply and what their demand is,” said Kurt Niquidet, president of the B.C. Lumber Trade Council. ..“There’s no way American supply, in the short-term, can do anything but rely on Canadian lumber,” Russ Taylor said. “Tariffs are just going to push the price up and create shortages,” Taylor said. “It’s just going to be market chaos, as it will be with OSB panels as it will be with pulp and newsprint.”
Teal Cedar Products has lost a bid for damages against the B.C. government over its declaration of First Nations rights on Haida Gwaii. The company argued the recognition of title over the lumber-rich but highly protected island archipelago deprived it of its ability to harvest despite Teal holding tree farm and forest licences in the area. It argued the B.C. government didn’t act in good faith, essentially expropriated property where Teal had business interests, and failed in a promise to keep the company whole during its negotiations with the Haida Gwaii Management Council over Indigenous title to the former Queen Charlotte Islands. B.C. Supreme Court Judge Brenda Brown rejected all three rationales and dismissed the claim for damages against either of the defendants, the B.C. government or the management council. …Teal obtained the two tenures from TimberWest in 2008, before selling them to A&A Trading Ltd. in late 2016.
Another wave of sawmill closures swept across British Columbia in 2024, from West Fraser’s Fraser Lake facility to Canfor’s operations in Polar, Vanderhoof, and Fort St. John. As the Northern View reported, Chief Robert Michelle of the Stellat’en warned that “the economic impact for our communities will be dire,” citing job losses not just in the Fraser Lake mill but also among log haulers, restaurant workers and gas station employees… It is clear that current conditions cannot sustain profitable operations, leaving businesses struggling and workers unemployed. The fundamental issue lies in how Victoria approaches forest policy. The government faces mounting pressure from multiple stakeholders. Environmental groups advocate for reduced harvesting levels, while Indigenous communities seek both greater access to timber supplies and a larger role in forest management. While environmental protection and Indigenous rights are important considerations in forest management, and rightly so, the government’s approach has failed to balance these priorities with economic sustainability.
Vancouver, BC — This week, the BC Council of Forest Industries (COFI) will welcome more than 600 industry, government, and Indigenous leaders to Prince George for a sold-out COFI 2025 Convention, running April 2-4. As one of the largest annual gatherings of the forest sector in Western Canada, the convention focuses on urgent challenges facing the industry—and the path forward. Attendees are set to explore how the sector can respond to rising US tariffs, global trade uncertainty and regulatory complexity. Discussions will center on strategies to improve industry competitiveness, strengthen partnerships with First Nations and sustain local jobs, while positioning BC as a global leader in sustainable forestry. … A highlight of the convention will be the release of a new study comparing international forest jurisdictions by Glen O’Kelly, CEO of O’Kelly Acumen, benchmarking BC’s performance against leading forestry regions—including Sweden, Finland, Austria, the US, and Brazil. 
COFI 2025 – April 2-4 in Prince George, BC — As BC’s forest sector grapples with significant turbulence – including US tariffs, geopolitical uncertainty, and sector-wide challenges in BC – strong leadership and collaboration are essential to securing a sustainable and competitive future. The “Calm, Cool, & Collaborative: Leadership for Turbulent Times” panel at the 2025 COFI Convention will bring together senior decision-makers from industry, government, and First Nations. These influential voices will share their insights on navigating market uncertainty, shaping effective policies, and strengthening community resilience. Jon our panelists: Hon. Ravi Parmar, Minister of Forests, Province of BC; Chief Councillor John Jack, Huu-ay-aht First Nations; Juan Carlos Bueno, President & CEO, Mercer International; and Lisa Dominato, Councillor, City of Vancouver for a lively discussion moderated by Greg Stewart, President, Sinclar Group Forest Products Ltd. & Chair, COFI Board of Directors. 
COFI 2025 Convention: April 2-4, Prince George, BC — The global trade landscape is evolving rapidly. Economic uncertainty, shifting regulations, and geopolitical challenges are reshaping market access for Canadian forest products. Staying competitive requires a clear understanding of emerging risks and strategic opportunities. At the COFI 2025 Convention, a panel of industry experts will examine the forces shaping international trade and explore actionable strategies to enhance industry resilience. Presenter and Moderator Russ Taylor, President, Russ Taylor Global will lead the discussion with panelists: Kate Lindsay, Senior VP & Chief Sustainability Officer, Forest Products 
The two BC regions that include resource-reliant communities like Smithers, Vanderhoof and Terrace stand to lose the most from tariffs, according to new research from the Institute for Research on Public Policy. …While BC stands to be the least affected province, tariffs are likely to cause the greatest disruptions in regions of Bulkley-Nechako and the Kitimat-Stikine. The first region depends heavily on forestry, while the second includes Rio Tinto’s aluminum smelter in Terrace. Counting existing countervailing duties, BC forest products could face tariffs exceeding 50 per cent, if not higher. …Almost three-in-10 workers in Bulkley-Nechako hold jobs in export-oriented industries with about 5.6% of the total work exposed to US tariffs. …Rounding out of the Top 5 are the Peace River and Cariboo (both 5.5%) and Kootenay-Boundary (5.4%). Regions potentially least affected by the tariffs include the Capital Region (1.5%), Squamish-Lillooet (1.4%) and the Central Coast (1.2%). Greater Vancouver’s exposure is 2.8% and the fast-growing Fraser Valley is 4%.
As Canada faces an urgent need for housing, BC’s forest sector has a critical role in meeting this demand with sustainable, high-quality wood products. Developing new strategies for how we generate and move wood fibre across the supply chain in partnership with First Nations, utilize the right wood in the right buildings, and deploy innovative pre-fab and off-site construction methods will be essential to increasing the domestic use of wood. Don’t miss this conversation on how we can help address Canada’s housing needs while driving economic growth and supporting sustainable forestry. Panelists:
…Donald Trump is plunging North America into a trade war and clogging the flow of goods between Canada and the U.S. …Canada’s forestry industry is in the crosshairs, with a 25 per cent tariff on lumber and pulp and paper products. The likely result is higher prices on everything from the materials used to build homes to basic necessities like toilet paper. Quebec’s economy is deeply rooted in its forests… Toilet paper is a big part of that flow. Two years ago, Canada exported over $1.6 billion worth of TP, with the U.S. receiving almost all of it. …Even if American mills had the capacity to process more lumber, they’d still face a workforce problem. It’s ironic that the U.S. is penalizing Canada — a responsible steward of the trees — right after we delivered firefighters, equipment and water bombers to protect California’s trees. Canada offered its support to the U.S., but now we’re getting burned.
Canada could be on the lower end of Trump’s threatened global tariffs next week, the Star has learned. Nothing, however, is guaranteed until Trump decides ahead of his April 2 deadline and no government officials are taking any assurances for granted, sources said. …Canadian sources with knowledge of discussions between the two countries say White House officials have suggested Trump may impose three escalating levels of tariffs on America’s trading partners, with Canada getting hit on the lower end of the scale. …Despite a recent news report the tiered-approach is not on the table, the sources said it aligns with the government’s understanding of what’s about to hit next week. Flavio Volpe, head of the Canadian Auto Parts Manufacturers Association, said, “I wouldn’t take any comfort from that… it may just be that some other countries have been levied a higher universal tariff”.
The American Wood Council (AWC) continues to do critical work on behalf of its members, and it is our pleasure to share notable examples from this past year… AWC continued to position U.S. wood products as a sustainable solution to address the environmental impact of the built environment. …Our codes and standards teams worked together to secure some important wins in the initial Group A ICC code cycle, including references to the ANSI Fire Design Specification. …As we look to this year, the new Administration means many changes in policy and regulations. We at AWC are prepared to continue to work hard to advance public policies that support market growth and protect the industry from adverse federal legislation and regulation. Our sector tells a truly bipartisan story, and we look forward to a fresh start with new opportunities to promote our industry and all of the good it does for the country.
In seeking to justify his imbecilic trade war against Canada, Donald Trump 
Willis, a business of WTW, and The Nature Conservancy (TNC) have launched a new $2.5 million wildfire resilience insurance for the Tahoe Donner Association in Truckee, California. Described as “first-of-its-kind,” this policy directly links insurance costs to proactive wildfire risk mitigation efforts. Developed in partnership with UC Berkeley’s Center for Law, Energy and the Environment, the policy aims to demonstrate how ecological forest management practices can lead to reduced premiums and increased insurance availability. Such techniques include tree thinning to improve the health and growth of the remaining trees and planned fires to clear out flammable vegetation, both proven to reduce wildfire risk and make forests healthier. Tahoe Donner has completed forest management projects over 1,520 acres since 2015. …This new policy, covering 1,345 acres of Tahoe Donner’s land, secures a 39% lower premium and an 89% lower deductible than would have been possible without the nature-based forest management.
CALIFORNIA — The US Department of Justice (DOJ) announced that it had reached an $8.1 million settlement in a civil False Claims Act case based on alleged customs violations by defendants Evolutions Flooring, a San Francisco-based importer of wood flooring, and its owners Mengya Lin and Jin Qian. …The complaint shows how DOJ and relators may formulate such cases. Evolutions and its owners were accused of knowingly evading customs duties, including antidumping duties, countervailing duties, and section 301 tariffs, on wood flooring manufactured in the People’s Republic of China. Acting at the direction of its owners, Evolutions allegedly mispresented the country of origin of certain flooring imports – declaring them as Malaysia-origin – to avoid the high duties applicable to China-origin products. Evolutions also allegedly falsely declared the true manufacturer of the imported merchandise. 
VERMONT — Oliver Pierson, Vermont state’s director of forestry, and Katharine Servidio, mapped out the [tarrif] tangle for the House Committee on Agriculture, Food Resiliency, and Forestry. As sawmill capacity in the U.S. has retracted, New England’s loggers have looked to Canada to process timber felled on this side of the border. …Vermont imported $52 million in sawmill and wood products from Canada in 2024, according to Pierson. …There is a case for bringing more milling back to America, Pierson said, but “it wouldn’t be for a year or two from now when we’d be able to stand up additional processing capacity.” In the short term, Servidio and Pierson said that they expect that U.S. tariffs on lumber imported from Canada and retaliatory Canadian tariffs on Vermont timber will be debilitating for the logging industry in the state.
NEW ZEALAND — The temporary exemption of tariffs on timber and lumber imported into the US provides some relief to New Zealand exporters. Though this exemption could be short lived based on the outcome of the Section 232 investigation aimed at determining the effects imports of timber, lumber and their derivative products have on the US supply chain. Exports of radiata pine products from New Zealand to the US were estimated at $358 million, making the US our third largest export market behind China and Australia. …The exemption comes about through internal US lobbying, by the likes of the American Building Materials Alliance and National Association of Home Builders. …The administration has recognised that raising costs on timber and lumber would hurt housing affordability and weaken an important supply chain. …We thank our kindred Associations in the US for making this happen. We now wait for completion of the s. 232 investigation.
