The federal government’s “Buy Canadian” policy for procurement for large infrastructure and defence projects kicked in on Tuesday as the U.S. trade war continues, Procurement Minister Joël Lightbound says. The policy was announced by Prime Minister Mark Carney in September and is essentially a mandate for the federal government to source components used in major government projects from domestic manufacturers. The procurement policy will extend immediately to government contracts valued at $25 million and over, but will expand to contracts valued at $5 million and over by the spring of 2026, Lightbound said. …Additionally, large federal construction and defence projects valued at $25 million or more will be required to use Canadian-produced steel, aluminum and wood products where the basic supply is available, he added. …In July, Carney had announced Canada would “restrict and reduce foreign steel imports entering the Canadian market.” In August, the policy was extended to Canadian lumber.
“We’re just waiting for the dust to settle.” That sentiment was expressed recently by Nick Arkle, CEO of Gorman Bros., regarding the current 45% tariff on Canadian lumber exported to the US. In other words, what the industry is seeking more than anything else is clarity. …Complicating this scenario for lumber producers—and one that should not and cannot be overlooked—is provincial government policy, especially in BC, Ontario and Quebec. …If there is a potential silver lining in Canada to the ongoing tariff soap opera, it’s the promise by the Canadian Liberal government to build 500,000 new, affordable homes per year, thus theoretically creating significant domestic demand for building materials like softwood lumber. …While the experts are skeptical that the federal government will meet its goal of building 500,000 new homes per year… it will be worthwhile watching to see if Canadian softwood lumber producers will step up and benefit from this initiative.
Hopes for relief on the tariffs front are likely on hold until the new year now that the US Supreme Court has adjourned for the holiday season before ruling on the matter of President Trump’s illogical and, likely, illegal trade tariffs. Their decision could come in January, which is a long wait for affected economies around the world. …It took just 35 days for lower courts to decide Trump’s use of the act for tariffs was invalid, which he appealed. …Rampant speculation is outlined by Daniel Schramm In the Missouri Independent: “
Canada-US Trade Minister Dominic LeBlanc says the door is open for American officials to restart trade talks with Canada. …”Canada believed it was making progress with the Americans — and talks would eventually move to automobiles and softwood lumber — but Trump “decided to suspend those negotiations. That’s regrettable.” …Canadian, American and Mexican officials are gearing up to review CUSMA, which offers Canada crucial protection from many of U.S. President Donald Trump’s tariffs. …On Thursday, Canada’s ambassador to the U.S. Kristen Hillman downplayed signals from the Trump administration about breaking down the trilateral pact and said she hasn’t “heard any indication from the US side that they want to change that foundation.” …All three countries must indicate by July 1 of next year whether they want to extend the agreement, renegotiate its terms or let it expire. LeBlanc said in private the conversations are “much more reassuring” about CUSMA.
This infographic, released December 12, 2025, provides an overview of the lumber industry, showcasing key metrics and trends related to production, exports and price change. It highlights significant data points, illustrating the state of the market and offering insights into the current landscape of lumber in Canada.
The Office of the US Trade Representative (USTR) held a hearing regarding the six-year review of the United States-Mexico-Canada Agreement (USMCA). Though some stakeholders advocated for maintaining the current framework, many called for targeted updates. Despite varied perspectives, there was broad consensus that USMCA should be preserved. Transshipment and circumvention of Section 232 tariffs emerged as recurring concerns, particularly from the automotive, steel and aluminum, and wood and lumber sectors. …Stakeholders from the wood products, millwork and cabinetry industries raised serious concerns about how USMCA’s current rules of origin are being exploited to circumvent U.S. trade remedies and undermine domestic manufacturers. …The organization’s representative urged the adoption of Labor Value Content (LVC) rules for wood products modeled after those used in the automotive sector to ensure that qualifying goods reflect substantial North American production and fair labor practices.
The negotiations that remade the North American Free Trade Agreement were, as one participant put it, a series of “near-death” experiences. …In the years since the U.S.M.C.A was signed, Mexico and Canada have become America’s top trading partners. Millions of jobs depend on this economic alliance, which exceeds $1.8 trillion in trade. …Last week, Trump suggested that he would exit the U.S.M.C.A.: “We’ll either let it expire or, well, maybe work out another deal with Mexico and Canada.” Some observers discount Trump’s bluster as mere gamesmanship. …He returned to the White House on a promise to create jobs and lower prices—to make the country “boom like we’ve never boomed before.” Instead, tariffs are fuelling inflation, and many experts believe that it is only a matter of time before the economy starts hemorrhaging jobs. …As in the previous round of negotiations, time does not appear to be on Trump’s side.
As US President Trump sticks with his campaign of tariffs on imports from Canada, some American industries are accusing Canadian competitors of using cheap materials from China in ways that violate free trade rules and undercut U.S. companies. The accusations emerged during recent public hearings in Washington into the future of the Canada-U.S.-Mexico Agreement (CUSMA). …Luke Meisner, counsel for the American Kitchen Cabinet Alliance, told the hearings that Canada and Mexico have become conduits for products from China, circumventing the hefty countervailing duties the US imposed on Chinese-made cabinets and materials in 2020. …Over the past five years, Canada “dramatically increased” its imports of made-in-China cabinets and cabinet materials — such as plywood, medium-density fibreboard (MDF) and moulding — while at the same time boosting exports of finished cabinets to the US, Meisner said. …The Canadian Kitchen Cabinet Association defends its products as Canadian-made.
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Forest Minister Ravi Parmar says proposed new zoning regulations in Nanaimo for heavy industries could have “extreme” consequences for a local pulp and power producer. …A motion by Nanaimo Coun. Paul Manly at a Nov. 17 meeting targets emission-intensive industries such as garbage and waste incineration facilities and chemical, petroleum and LNG plants. …“This is not anti-Harmac,” Manly said in an interview on Friday. …In a letter to Nanaimo’s mayor and council this week, Parmar said the motion sends the wrong signal at a time when the B.C. forest manufacturing industry is in a downward spiral. “This move could result in lost investment, confidence and assuredness in the local forest sector,” said Parmar, noting Harmac Pacific is a key driver of the local forest sector and a major employer in Nanaimo’s economy. “We need to be supporting our forestry operators, not punishing them. This motion is closer to the latter.”
Domtar officials are reassuring their Port Alberni workers that the closure of the company’s Crofton Mill will have minimal impact here. Chris Stoicheff – Senior Director of Public Affairs at Domtar – says the company and entire industry needs provincial forestry rules to change to ensure fibre supply to BC mills. “We’re going to continue to operate that mill for the foreseeable future, but I think we’re also quite direct about the challenges that the industry is facing in BC and what we’ve been quite clear that those are policy driven constraints.” he said. Stoicheff says while most of Port Alberni’s pulp came from Crofton, that supply will now come from their Howe Sound mill. He said local MP Gord Johns work to secure a biomass tax credit is an example of the government support the forest industry needs.
The effect of 10% tariffs on Canadian wood imports was the subject of a public hearing before the state’s Maine-Canadian Legislative Advisory Commission Wednesday. Dana Doran is executive director of the Professional Logging Contractors of the Northeast who says his members are struggling to stay afloat. “If they buy wood from Canada it’s hit by a 10% tariff on those raw logs. If they export any of their finished product they’re subject to any of the export tariffs,” Doran said. “So we’ve seen a chaotic situation that has occurred over the past 8 weeks because of the situation with tariffs.” Doran says if the U.S. had more domestic manufacturing of building and construction products it would have a bigger share of the marketplace, which could blunt tariffs. But Canada, he says, has 60% of that market.