BC’s forestry sector is awaiting the results of a US Commerce Department investigation into the imports of wood products, which could impose further tariffs on the beleaguered industry. It comes months after US President Trump launched a Section 232 investigation into whether importing timber, lumber and derivative products could pose a national security threat to the US. …”Lumber is just one of many sectors that could get impacted … maybe lumber gets a lower tariff, but plywood and OSB and pulp get a higher tariff. We don’t know,” said Russ Taylor. …Taylor says that, while the Section 232 tariffs could cause further mill curtailments in BC, the U.S. forestry industry doesn’t yet have the capacity to fill the void. …”And the US mills will be very happy to raise their price … at a discount to the Canadian price because that’s just free money in the short term for them,” he added.
A B.C. Supreme Court justice has authorized the process that will ultimately lead to the sale of the Nova Scotia timberlands, Crown land leases and a nursery controlled by Northern Pulp. Justice Shelley Fitzpatrick approved a $104-million baseline bid for the assets by Macer Forest Holdings on Thursday. Macer’s bid, known as a stalking horse agreement, positions the Ontario-based company to pick up the …Pictou County pulp mill assets unless other interested parties come forward. If other bidders are identified by Nov. 20, an auction would be held using the stalking horse price as the starting point. …If Macer is not successful at auction, it would receive compensation of up to about $3.1 million. …Proceeds of the asset sale are to go toward Northern Pulp’s debts, including money its parent company, Paper Excellence, has lent it for the creditor protection process, the cost of winding up company pension plans and some of what is owed to the Nova Scotia government for previous loans.
The US and Canada are fighting about lumber once again. The neighbors have feuded over softwood lumber since the 1980s. The US has periodically put in place duties to counteract what it claims are unfair subsidies and sales of lumber priced below market value. …Canada has long resisted changing its trade practices on lumber. But as the Trump administration has become more bellicose about its trade relationship with Canada, the country’s stance may be softening. On July 16, BC Premier Eby said that Canadian officials are now open to putting a quota on the amount of lumber exported to the US. The increased fees will benefit foresters in the US South… but the US would struggle to offset the lumber it gets from Canada in the short-term, potentially driving up housing prices. Here’s what to know about the commodity that has long dominated US-Canada trade tensions. [to access the full story a Bloomberg subscription is required]
Since Feb. 1, 2025, Canada has been plunged into a major trade war, triggered by U.S. President Donald Trump. …These measures threaten thousands of jobs and destabilize the deeply integrated supply chains between the two countries. This is not the first time Canada has faced such a threat. In 2018, similar tariffs were imposed by the same president but lifted in 2019 with the conclusion of the CUSMA. The difference today is the far greater scale and scope of the trade war. …The USW calls for a robust industrial strategy to reduce Canada’s dependence on U.S. trade. Priority must be given to steel, aluminum, wood and materials manufactured in Canada in all government-funded projects. Public money must be used to support Canadian jobs. The union is also calling for a tax credit to encourage the procurement of Canadian-manufactured goods, as well as the creation of strategic reserves of critical minerals to stabilize demand and secure supply chains.
JAFFRAY, BC — The BC Labour Relations Board has dismissed an application from unionized employees with Galloway Lumber Company seeking a court order against the employer in a labour dispute over a negotiated severance agreement due to the permanent closure of the Galloway sawmill, near Jaffray. While the labour board dismissed the application on Aug. 14, vice-chair Carmen Hamilton deferred the matter to the parties’ negotiated dispute resolution process. Meanwhile, both sides are have agreed to bring the matter before an arbitrator who is not available until January 2026. “At its heart, this matter is a contract interpretation dispute,” wrote Hamilton. The United Steelworkers Local L-405 is seeking roughly $1.2 million in severance that was negotiated as part of an adjustment plan that was negotiated following the closure of the mill.
Canadian business owners are sharing growing fears that things could go from bad to worse if the U.S.-imposed trade war doesn’t end soon. New data from the Canadian Federation of Independent Business (CFIB) shows those business owners are being hit the hardest, particularly in B.C. “Two-thirds of B.C. businesses import or export directly to the United States, and when you look at those who do so indirectly, so they buy from importers or exporters, that number jumps up to 80 per cent of all businesses exposed to trade with the United States. So, that’s a huge number,” Ryan Mitton, director of Legislative Affairs in B.C. at the CFIB said. He adds that the situation appears even more grim for hard-hit industries like steel and lumber. “…one in five in BC have been impacted by softwood lumber tariffs, and that’s the highest rate of all the provinces in Canada,” he adds.
The US Court of International Trade threw out a legal challenge from Canadian softwood lumber producers J.D. Irving Ltd. granting a motion-to-dismiss from the Commerce Department. Timothy Reif said in the opinion that J.D. Irving, which had challenged Commerce’s 2022 antidumping administrate review on grounds that the agency erred by assigning a higher cash deposit rate in the order, has its proper venue under a binational panel though the USMCA now reviewing the Commerce order. While the Canadian firm said it was challenging not the Commerce fine order but the instruction for the cash deposit rate. Reif said the challenge entered on the commerce final result and thus should rest before the USMCA panel. [to access the full story, a MLex.com subscription is required]
HAMILTON — The Ontario government is delivering on its plan to protect Ontario workers by investing $70 million in expanded training and employment services for those affected by U.S. tariffs and policies. This funding includes support for the province’s 
A proposed sale of Northern Pulp’s vast timberlands appears to leave nothing for the cleanup of its former kraft pulp mill in Pictou County or for the money owed to taxpayers. But the companies that provided interim financing to Northern Pulp through its five-year insolvency, and potentially a significant portion of its underfunded pension obligation to former mill employees, would get paid. On Monday, Northern Pulp filed a proposed “stalking horse” (a minimum bid) of $104 million for Northern Timber with the BC Supreme Court as part of its insolvency proceedings. It is also seeking the extension of creditor protection, leaving the potential that a higher bid could come in for its valuable forest lands. …No estimated cost has been released publicly for cleaning up the Abercrombie site that housed Northern Pulp for 50 years. …On Monday, Northern Pulp said it had provided a cleanup plan to the Department of Environment.
President Donald Trump on Friday announced he’s directing his administration to investigate imports of furniture into the United States that will lead to higher tariffs by October. “Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined,” Trump wrote. “This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,” Trump said. …Already, furniture prices have been increasing over the past few months as Trump hiked tariffs on countries including China and Vietnam, the top two sources of imported furniture. Both countries imported $12 billion worth of furniture and fixtures last year, according to US Commerce Department data. …Furniture stocks, such as Wayfair, William-Sonoma and Restoration Hardware, all tanked in after-hours trading Friday.
We welcome the recent announcement from the White House regarding the US–EU Framework Agreement on Reciprocal, Fair, and Balanced Trade. Notably, the European Union has committed to addressing U.S. concerns about the EUDR, acknowledging that US commodity production poses negligible risk to global deforestation. This recognition is a positive step toward ensuring Southern Pine lumber producers and exporters are not unfairly burdened by regulations that fail to account for the sustainability and stewardship practices already in place within the American forestry sector. …The EUDR’s stringent traceability requirements (such as geolocation data for every plot of land from which timber is sourced) present serious compliance obstacles for U.S. producers. …Recognizing the broad impact of the EUDR across multiple agricultural sectors, the forest products industry is strategically voicing its objections through official trade and commerce channels.
The US International Trade Commission determined on August 21 that revoking the existing antidumping duty order and countervailing duty order on wooden cabinets and vanities from China would likely lead to “continuation or recurrence of material injury within a reasonably foreseeable time.” The Kitchen Cabinet Manufacturers Association (KCMA) said that ruling “means that the antidumping and countervailing duty orders will remain in place for at least another five years and continue to provide relief to the US domestic industry from dumped and subsidized merchandise from China.” As a result of the Commission’s affirmative determinations, the existing orders on imports of these products will remain in place. …The action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. The Commission’s public report on Wooden Cabinets and Vanities from China will be available by October 3, 2025.
As of mid-2025, the global tariff environment has grown increasingly unpredictable. The United States has reinforced its protectionist stance with new and expanded duties aimed at key trade partners. Most notably, a 50% tariff on imports from Brazil was enacted, targeting a wide range of products. Wood pulp and certain industrial inputs were explicitly exempted, though lingering confusion around the policy’s scope has led companies to reassess sourcing strategies. …Many of the early US tariffs implemented—such as those targeting Canadian softwood lumber, Chinese finished goods, and EU paperboard products—remain in place. …In response to this complex tariff environment, companies are increasingly focusing on supplier diversification, regional trade agreements, and nearshoring strategies to reduce risk. While some nations—like Mexico and Chile—have emerged as viable alternatives for sourcing pulp, packaging, and paper products, the reshuffling of trade lanes is still underway. 
The pieces might be falling into place for Wyoming’s timber industry to make a strong comeback, legislators and land management officials said. The volume of timber being cut in Wyoming might outpace the state’s few remaining sawmills to meet the demand. The increase in demand coincides with tariffs being placed on Canadian lumber. …Long-term success of expanding the Wyoming timber industry hinges on building back the “local timber industry,” instead of trucking logs to mills in other states, Bighorn National Forest Supervisor Andrew Johnson said. Wyoming timber products could include “finger-jointed two-by-four” boards, as well as wooden posts and poles, he said. Johnson made his remarks before the Wyoming Legislature’s Select Federal Natural Resources Committee. He and other land management officials gave optimistic reports as they informed the committee about the outlook for logging and lumber milling in Wyoming, due to recent state and federal policy changes.
NEW ZEALAND — The timber industry is battening down the hatches, as it struggles with low demand, increased running costs, and wars and tariffs overseas.