A wide shadow of uncertainty has been cast over Canada’s forestry sector by President Donald Trump’s threat to impose a 25% tariff on its lumber products. Several industry groups have released statements criticizing the tariff as unnecessary and harmful for both sides, a sentiment echoed by British Columbia Premier David Eby. …Eby said forestry companies aren’t sure how they should invest or if they should put money into their companies at all. …Forest Products Association of Canada president Derek Nighbor said the US can meet about 70% of its homebuilding lumber needs. …The BC Lumber Trade Council called the tariff plan a “punitive, unjustified protectionist measure.” …National Association of Home Builders chairman Carl Harris said, “Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices.”
The vast majority—72%—of respondents to an HBSDealer poll question say the United States should not pursue a policy of aggressive growth. However, an aggressive approach has been launched —and then quickly paused. …For the home improvement industry, tariffs on Canadian lumber continue to be a central and controversial topic. …NAHB Chairman Carl Harris. “NAHB urges the administration to reconsider this action on tariffs, and we will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production.” …Meanwhile, with a deeply ingrained opposition to imports subsidized by the Canadian government, the U.S. lumber industry applauds the tariffs. It also discounts the idea that increasing the tariffs on Canadian lumber imports would lead to significantly higher home prices. The US Lumber Coalition argues that softwood lumber prices are currently low and have not kept pace with general inflation.
President Trump conceded Sunday that there may be “some pain” from his sweeping tariffs on Mexico and Canada, but they will eventually lead to a new “GOLDEN AGE.” Nice of him to promise a glorious future because the pain is already unfolding. …He also included a blast at these columns for leading the “Tariff Lobby” after our editorial called his 25% across-the-board tariffs on our friends and neighbors “
Recently, the Wall Street Journal’s editorial board published a piece titled “
Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday. But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with self-inflicted wounds from the tariffs. Trump has repeatedly insisted that tariffs on Canada and Mexico are about illegal border crossings and the smuggling of fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to “respect” the US. …The economics division of the insurance company Nationwide estimated that Trump’s proposed tariffs on Canada and Mexico would increase inflation by as much as 0.5 percentage points and pull down growth by 0.7 percentage points. The analysis noted it did not “account for potential retaliatory tariffs from Canada or Mexico, which could amplify the deleterious impact.”
President Trump said, “We don’t need Canada to make our cars. We don’t need their lumber because we have our own forests,” he said. “We don’t need their oil and gas.” Mr. Trump is wrong on all three, but we’ll focus on lumber. The U.S. doesn’t produce enough lumber to meet domestic demand and thus imports about a third of the softwood used in home construction, mostly from Canada. …Mr. Trump’s tariff threat has created uncertainty for lumber wholesalers and contractors that could delay rebuilding. The U.S. can’t ramp up lumber production in the near term to meet domestic demand, so contractors will have to eat the tariff cost on lumber from Canada or import more from other countries, which would be expensive. If Mr. Trump wants to increase U.S. lumber production, he could open up more federal land for logging. …More tariffs will punish Americans trying to rebuild. [to access the full story a WSJ subscription is required]
BURNABY, BC — The United Steelworkers union welcomes Premier David Eby and the Government of BC’s decision to expedite major projects, representing an investment of approximately $20 billion, and for establishing a council to advocate for forest workers in the face of existing and pending duties and tariffs. The strategic move to advance critical mineral and energy products not only boosts the province’s economic resilience, but also ensures job security for USW members. …By accelerating these projects, the province is taking proactive steps to mitigate external economic pressures and reinforce that B.C. is a key leader in the sector. The advisory council to deal with potential impacts of increased duties and possible additive tariffs on lumber exports to the U.S. is equally important. The USW is pleased to be included in the council, which is working to get rid of the softwood duties.
[Companies] in B.C. and across Canada, were given a last-minute, one-month reprieve Monday afternoon after Prime Minister Justin Trudeau spoke with U.S. President Donald Trump… The wood products sector sends $5.7 billion of products to the U.S., and another $962 million in pulp-and-paper products. On Monday, Interfor said it has been closely monitoring the U.S. tariff issue for some time, and as a diversified North American producer, comes into this new environment in as good a position as anyone in the industry. “Our leadership team has been hard at work identifying ways to insulate our company from tariff exposure where possible and put us in the best position to continue to thrive,” said Svetlana Kayumova, Interfor’s vice-president of corporate communications and government relations. “We know there is a housing shortage across North America, and the lumber products we produce are a vital part of the solution.” Interfor has mills on both sides of the border.
A local forest-sector manufacturer is receiving a boost from the province to help grow its product line. Atco Wood Products — located in Fruitvale, 67 kilometres southwest of Nelson — is considered one of the top producers of softwood veneers and related by-products in the region. Through the B.C. Manufacturing Jobs Fund (BCMJF), the Government of B.C. will hand Atco $50,000 to complete planning for a new veneer-production facility, and purchase and commission new equipment to improve fibre utilization and optimize production. The company — which also manufactures veneer, ties, posts, wood chips, mulch and biomass — has evolved from its sawmilling roots, into a cutting-edge manufacturer of specialized softwood veneer and other wood products. As part of new support for forest-sector manufacturers throughout the province will help create jobs and boost local economies while diversifying the range of fibre sources used to manufacture high-value, made-in-B.C. forest products.
Premier David Eby is tasking a new cabinet committee with co-ordinating the whole-of-government approach to protect B.C.’s workers, businesses and economy against ongoing tariff threats from the United States. Ravi Kahlon, Minister of Housing and Municipal Affairs, will chair the committee, which will act as a day-to-day war room, co-ordinating actions across government to fight back on behalf of British Columbians and grow the province’s economy. “The proposed U.S. tariffs are a direct attack on B.C.’s families,” Premier Eby said. “This threat isn’t going away anytime soon – not while this president is in power. …Minister Kahlon brings deep experience in government to the table and is uniquely positioned to co-ordinate this work across government ministries.” The B.C. government has stepped up with a three-point strategy to fight back and protect British Columbians …The new committee will ensure that B.C.’s response is fast, tough and fully focused on protecting British Columbians.
The B.C. government has turned down a petition to investigate Canada’s largest forestry company at a time when a federal probe into the firm faces the prospect of total collapse. On December 2, 2024, the national Standing Committee on Natural Resources unanimously passed a motion summoning Paper Excellence owner Jackson Wijaya to testify before lawmakers—an order that was enforceable with a legal subpoena if necessary. …Charlie Angus, the NDP’s natural resources critic and member of Parliament for Timmins–James Bay, said Wijaya’s expanded ownership over APP represents a break down in government oversight. …the probe came to a grinding halt when Prime Minister Justin Trudeau … prorogued Parliament. That act wiped out the work of all parliamentary committees, including the motion to summon Wijaya….When asked if B.C.’s Ministry of Forests would heed calls to launch its own investigation into Paper Excellence, a spokesperson deferred to the federal government. 
The Western Retail Lumber Association used its trade show, taking place now in Edmonton, as the platform for announcing a major rebranding initiative. After in-depth consultation with its members and board, partners, and key stakeholders, the WRLA has been renamed as Supply-Build Canada. The change is effective today. “As the association expands its advocacy efforts and external partnerships, the ‘Western Retail Lumber Association’ name became a misnomer,” says association president Liz Kovach. “The building supply industry encompasses building materials beyond lumber, and the association represents manufacturers, distributors, wholesalers, and other categories not represented by just retail.” Because many of the association’s members, especially on the supplier side, have offices and production outside of the West, the new name intends to capture that, “making a wholesale change of name both necessary and timely,” Kovach adds.
The Ontario government is stepping up to protect Ontario workers in the face of potential American tariffs on Canadian goods by investing an additional $100 million in the province’s Skills Development Fund (SDF) Training Stream, bringing the total provincial investment in SDF to $1.5 billion. This investment will support workers in fields including manufacturing, construction, critical mineral extraction and other skilled trades, providing them with the skills and training they need to secure better jobs and bigger paycheques while protecting Ontario’s economy… “The Ontario Forest Industries Association welcomes additional investment in the Skills Development Fund,” said Ian Dunn, President & CEO. “This commitment will help ensure workers in Ontario’s forestry sector—and across the province—are equipped with the skills and training needed to thrive in an increasingly competitive global market. By investing in our forestry workforce, Premier Ford’s government is strengthening our economy and supporting industries that are vital to Ontario’s growth and resilience.”
BEIJING — China countered President Trump’s across-the-board tariffs on Chinese products with tariffs on select U.S. imports Tuesday, as well as announcing an antitrust investigation into Google. The Chinese response was “measured,” said John Gong, a professor at the University of International Business and Economics in Beijing. “I don’t think they want the trade war escalating,” he said. …This time, analysts said, China is much better prepared to counter, with the government announcing a slew of measures that cut across different sectors of the economy, from energy to individual U.S. companies. China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil. …China also announced export controls on several elements critical to the production of modern high-tech products. “A risk is that this is the beginning of a tit-for-tat trade war,” Stephen Dover of Franklin Templeton said.
“
PORTLAND, Maine — Tariffs that are central to Trump’s economic policies could destabilize markets for numerous Maine products from lumber to electricity. …Tariffs on products from Canada, which is Maine’s biggest trading partner, would send powerful ripples across the state’s economy. Maine brought in $4.4 billion of goods – fuels, oil, electricity, wood pulp and more – from its neighbor in 2024. Imports from Canada far outpace those from any other trading partner. …Patrick Woodcock, CEO of the Maine State Chamber of Commerce said, “many state businesses see Canada not just as a market to buy and sell items, but a place with mills and processing plants that are “fully integrated in their business plans”. …New tariffs could complicate trade relations between the U.S. and Canada, which have been tested in disputes over lumber for decades, said Patrick Strauch, of the Maine Forest Products Council… but a universal tariff would have the biggest effect on the price of energy. [the access the full story a Portland Press Herald subscription is required]
CALIFORNIA — Home builders have avoided a price hike in materials — especially lumber — after the Trump administration said it would delay steep tariffs on Canadian and Mexican goods for at least 30 days. …The temporary reprieve is good news for the construction industry, said Danielle Hale, chief economist at Realtor.com. “In particular, Canadian lumber is an important input in home construction, finishes such as cabinets, and furniture,” Hale said, adding that this is happening at a time when the U.S. is already dealing with an ongoing housing shortage. Prior to the pause, Carl Harris, chairman of the National Association of Home Builders, sent a letter to President Donald Trump outlining the organization’s “serious concerns” about the effects of the proposed North American tariffs. NAHB is particularly concerned about two essential building materials: softwood lumber and gypsum, which is used for drywall. More than 70% of those materials come from Canada and Mexico.
NORTH CAROLINA — International trade is complex and one of the least understood components of the globally connected world. …International trade promised cheaper goods and economic growth, and it delivered. But for many Americans, international trade came at a severe cost — the loss of good-paying jobs that helped build the middle class. The frustration isn’t just nostalgia; it’s real. However, trade is not just about economics — it also involves politics, regulations, and agreements that can create both opportunities and unexpected tensions between nations. One example of how regulations impact trade is the lumber industry. In the US, environmental regulations limit how much timber can be harvested, making production more expensive and restrictive. …When US tariffs on Canadian softwood lumber were imposed in 2017, home builders in North Carolina faced a significant hike in costs, affecting new home construction. The construction industry’s experience is not isolated. Trade wars create a domino effect that reaches far beyond political brinkmanship.
While Donald Trump has yet to act on his multiple tariff threats, it’s likely he will. So the fear lingers that the US president’s aggressive trade posture will sow global disorder, depressing growth and roiling markets, particularly if targeted nations retaliate. But retaliation is not the only or even the most likely response to Trump, no matter how broadly he finally delivers on his threats. The US has wielded tariffs as a weapon for eight years now. …Some nations retaliated; others offered concessions or challenged them before global trade arbiters. But most just quietly moved on, seeking trade with countries other than the US. Since 2017, trade has held more or less steady at just under 60% of global GDP. But there’s been a decline in the US share of trade flows offset by an increase in other regions. Trump 2.0 seems likely to bring more of the same: trade without America.