Canada continues to stare down the barrel of the American trade war. The United States-Mexico-Canada Agreement faces its first big review in 2026. This country remains in a uniquely high-stakes moment. …This will, and will always be, an uneven fight. Canada is 40 million people and only the world’s ninth largest economy. A middle power is going up against the world’s richest and most powerful country. How exactly is it even possible for Canada to win in this asymmetric trade war? Crucially, this conflict isn’t just about steel, soybeans or softwood lumber – it’s about narrative and power. …US President Trump frames trade deficits as proof that the US is “losing”:
- Give Trump some face-saving concessions that look like a win for him
- Use oil, Canada’s unique economic hard power
- Play defence: Reform our corporate tax regime
- Northern gambit: Arctic crisis for trade leverage
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A U.S. court delivered a sharp rebuke of President Donald Trump’s trade policy on Wednesday, declaring he abused his authority and striking down many of his tariffs — at least for now. The upshot for trading partners, including Canada: Certain specific tariffs on steel and aluminum remain in place, but gone, for now, are sweeping levies on entire countries. The order by the Manhattan-based U.S. Court of International Trade quashes Trump’s 10 per cent across-the-board tariff on most nations and his declaration of a fentanyl emergency to impose 25 per cent tariffs on numerous Canadian and Mexican goods. The White House vowed to fight back with every available tool. This means an 
Tariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. …Lumber remains a primary concern, with countervailing and antidumping duties expected to more than double this fall. Steve Martinez, president of Tradewinds General Contracting in Boise, Idaho, recently spoke with CNBC to emphasize just how much lumber goes into the construction of a new home. “This entire house is built out of wood,” Martinez said. “I mean, we really do have wood on the floor, wood on the walls, wood on the ceiling. Can’t really get away from building a house like this without using a large number of wood products in the home.” As a result, price increases to lumber can cause a huge disruption for home builders. And lack of certainty adds complexity to the home-building process.
Domtar has been penalized $17,200 for nearly two dozen failures to control the release of emissions from its Skookumchuck, BC, mill. The kraft pulp mill was found to have violated pollution levels 23 times over eight months starting in 2021, according to a decision from director of the Environmental Management Act Bryan Vroom. On at least six occasions, the decision found Domtar failed to keep smoke emissions from a wood-waste-fired power boiler below the 40 per cent opacity required under its 2013 permit. …The company disputed the findings, arguing that a nearby air quality impact assessment showed the impacts to human health were “not significant” and that the ministry failed to show the violations would impact workers. In his decision, Environmental Management Act Bryan Vroom responded by reducing the severity of the failures to a level of “low to none.” …Domtar acknowledged the penalties in an email, and said it is working with B.C.’s environment ministry in response.
Canada has challenged both duties in our free trade arrangements with the US and at the WTO — often successfully but to no avail. …Clearly, putting an end to 40 years of a softwood lumber trade war should be a top priority for Canada in its list of fixes it seeks in any CUSMA renegotiation. …Nevertheless, a looming trade crisis may present some interesting opportunities in the confluence of at least three policy priorities of the new federal and BC governments. …In the recent election, Carney promised to double the number of homes built in Canada annually to 500,000, entrusting the implementation of this plan to a new Build Canada Homes (BCH) agency that will act as a developer overseeing the construction of affordable housing. …Hence, BC lumber displaced from the US market can be redirected at home to drive down the cost of a significantly increased inventory of new homes throughout Canada.
VANCOUVER, BC – West Fraser Timber Co. Ltd. released its 2024 Sustainability Report, Building Together: People and Partnerships. The report highlights the Company’s sustainability performance across a variety of environmental, social, and governance goals and disclosed targets. “Since our founding 70 years ago, West Fraser has recognized our responsibility to the environment and society while delivering solid financial performance,” said 
Culturally significant land in the Cowichan Valley has been returned to Lyackson First Nation and Cowichan Tribes communities, a reconciliation landmark between the Nations and B.C. The lands that are now in possession of the Nations are near an existing Cowichan Tribes Indian Reserve known as Skutz Falls IR8 and adds to an area that has historically been used by the Nations for gathering, harvesting and other activities of cultural importance for their communities. “The acquisition of this parcel of land could not have been made possible without the commitment of British Columbia, our kinship ties with Cowichan Tribes and willing seller Mosaic,” said Hereditary Chief Laxele’wuts’aat Chief Shana Thomas of Lyackson First Nation. 
Domtar appears close to making a final decision about whether to convert its newsprint mill in Gatineau, Quebec, to a containerboard mill. …Last week, Unifor concluded labor negotiations with Domtar regarding the Gatineau site, and the final contract will likely be published by month’s end, said Daniel Cloutier, Unifor Quebec director. As part of the labor arrangement, agreed not to bargain, lock out or strike for eight years — on the condition that Domtar would move forward with the mill conversion, Cloutier said. Domtar agreed to proceed with the mill conversion investment, Cloutier said, although the company has not issued a final decision. Unifor anticipates that should come by autumn, if not earlier. …”one thing that could help them to make that decision was the guarantee that they will have no conflicts at [the] Gatineau plant while they proceed with the construction of the new facility,” he said.
The Coalition for Fair Trade in Hardwood Plywood has petitioned for antidumping and countervailing duties to counter unfair trade practices by Indonesia, Vietnam, and China. These petitions were filed on Thursday, May 22, with the U.S. Department of Commerce and the International Trade Commission and have significant implications for our economy, in which hardwood plywood plays a critical role in producing numerous downstream products. The Coalition for Fair Trade in Hardwood Plywood alleges that the governments of Indonesia, Vietnam, and China are actively subsidizing dozens of programs benefiting their industries, including providing products at subsidized rates and multiple grant, tax, and lending programs. 
SEELEY LAKE, Montana — A law passed during the 2025 legislative session could provide $6 million in low-interest rate loans for an entity that wants to start up a wood products facility. The measure could impact Seeley Lake, where Pyramid Mountain Lumber once operated. “I think the likelihood of you know, somebody coming here, obviously, there’d be opportunity at other mills as well, but they really like the, the ability to source timber from this site,” said Pyramid Mountain Lumber owner Todd Johnson. Johnson says the new law would incentivize anyone looking to open a new facility by providing funding for one portion of the total for opening a new mill. “I think the, the main designs behind it were so that it would allow somebody to secure a site. Six million dollars would go a long ways towards securing, you know, a site here in Montana,” said Johnson. 
As Oregon lawmakers frantically search for money to fund roads and wildfire prevention, they have landed on a surprising idea: Dredging up a fight over cap-and-trade that once dominated legislative attention. Recently, there’s been increasing momentum to adopt a cap-and-trade system, where polluters purchase credits for their greenhouse gas emissions, and trade them with other emitters to ensure they are meeting a declining state emissions cap. That push has been led, according sources, by Sen. Bruce Starr, R-Dundee. But it appears to have gained traction as other proposals to raise money for road and bridge maintenance and firefighting face an uncertain fate. Washington and California have cap-and-trade programs, and early talks in Oregon have involved adopting a law similar to Washington’s… Funds generated from gas and diesel suppliers could pay for road projects … wildfires, climate nonprofits, and transit or pedestrian uses.
GREENVILLE , SC — The U.S. Endowment for Forestry and Communities released its 2024 Annual Report. The report highlights a year of expanded reach with $29.1 million awarded across 109 projects in 30 states and Washington, D.C., through innovative programs that strengthen the links between healthy forests, resilient communities and sustainable markets. The report details the Endowment’s sharpened focus on transformative initiatives, including the launch of an impact investing program, advancements in forest carbon transparency and streamlined market access for domestic wood fibers. “2024 was a pivotal year where we not only supported critical projects but also invested in scalable, sustainable solutions,” said Pete Madden, president and CEO of the Endowment. “By magnifying the connections between working forests, strong markets and vibrant communities, we are helping to drive systemic change across the forestry sector.”
A German wood paneling maker plans to open a $250 million manufacturing plant in South Carolina’s rural Clarendon County. Homanit announced Wednesday it will build its first United States manufacturing facility on 140 acres near the small community of Alcolu — population 425. The company pledged to employ 300 people in the area located off Interstate 95, about 40 miles north of its intersection with I-26. “This investment marks a significant milestone for our company, and we’re proud to become part of such a vibrant and forward-looking region,” Homanit Managing Director Fritz Homann said in a statement. “The area’s skilled workforce, strategic location and strong infrastructure make Clarendon County the ideal foundation for our next phase of growth in North America.” The announcement marks the largest single investment in Clarendon County economic development history, according to Central SC Alliance President Jason Giulietti.
