President Trump has delayed new tariff increases on upholstered furniture, kitchen cabinets, and vanities for a year, pushing their implementation to 2027, according to a White House statement. Trump signed a proclamation hours before the end of 2025, postponing the tariff hikes on these items, which were originally due to take effect on Thursday. In September, Trump ordered 25% new tariffs on kitchen cabinets and upholstered furniture. Those took effect in October, with rates slated to rise to 50% and 30%, respectively, by 2026. The Wednesday order delays the significant increase, leaving tariffs on these goods at 25% for the time being. …The Trump administration has come under mounting criticism for failing to stabilize prices. …In September, Trump justified his tariffs on these wood products as well as on timber and lumber on national security grounds, and the need to protect domestic wood industry.
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Prime Minister Mark Carney said Canada probably won’t reach a near-term deal with the United States to lower tariffs on sectors such as steel and aluminum, and negotiations are likely to be rolled into next year’s review of the US-Mexico-Canada Agreement. Canada and the US were close to a pact on metals tariffs, but President Donald Trump then terminated talks in October. …“My judgment is that that is now going to roll into the broader CUSMA negotiation, so we’re unlikely, given the time horizons coming together, to have a sectoral agreement,” Carney said on Thursday. “Although if the United States wants to come back on that in those areas, we’re always ready there — we’re very ready.” …Canada is “very ready on forest products to strike an agreement,” the prime minister added. The U.S. has placed roughly 45% duties and taxes on imports of Canadian softwood lumber, to the frustration of US homebuilders.
Canada and the U.S. will launch formal discussions to review their free trade agreement in mid-January, the office of Canadian Prime Minister Mark Carney said. The prime minister confirmed to provincial leaders that Dominic LeBlanc, the country’s point person for US-Canada trade relations, “will meet with U.S. counterparts in mid-January to launch formal discussions”. …Carney met with the leaders of Canada’s provinces on Thursday to give them an update on trade talks. Canada is one of the most trade-dependent countries in the world, and more than 75% of Canada’s exports go to the country’s southern neighbor. But most exports to the US are currently exempted by USMCA. …Canada is the top export destination for 36 US states. Nearly $3.6 billion Canadian worth of goods and services cross the border each day. About 60% of US crude oil imports are from Canada, as are 85% of US electricity imports.
The trade war launched by Donald Trump continues to intensify, striking Canadian workers. In addition to the 50% tariffs on steel and aluminum imposed earlier this year and the duties on non-CUSMA-compliant automobiles and parts, Washington added a 50% tariff on copper in July. More recently, a new 10% duty on softwood lumber was introduced, on top of the existing countervailing and anti-dumping duties. …Thanks to the mobilization and constant pressure of the United Steelworkers, several long-standing union demands have finally been adopted in Ottawa. …The federal government announced that it will now require the use of Canadian-made products in publicly funded projects and has announced new investments to strengthen Canada’s industrial capacity and the resilience of our supply chains. …Canada must go further and adopt a strong industrial strategy to reduce our dependence on the U.S. market, protect jobs, and ensure that we never again find ourselves in such a vulnerable position. 
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.
SUNDRE, Alberta – The general manager of what will soon become the former West Fraser – Sundre Forest Products said there will be no impact on staff or operations amid a corporate reorganizing. According to a December letter to vendors, West Fraser is “undertaking an internal corporate reorganization, whereby Blue Ridge Lumber, Spray Lake Sawmills, Crowsnest Forest Products, Sundre Forest Products, and Manning Forest Products will be amalgamated into one company and renamed West Fraser Alberta Wood Products Ltd.” The new entity is to remain a wholly-owned subsidiary of West Fraser Mills Ltd., and the amalgamation and rebranding will be effective as of end of day on Dec. 31. “There’s zero impact to operations,” said Jason Foote. “This restructure is administrative”.
MACKENZIE COUNTY, Alberta — An agreement with Calgary-based PowerWood Canada Corp. will bring two new wood pellet manufacturing facilities to the Mackenzie County region in Northern Alberta, Canada. Josh Knelsen, Mackenzie County Reeve, announced Dec. 23 the agreement. “This is a leading-edge, first-of-its-kind project in Canada that turns wildfire-damaged wood into clean energy and helps reduce reliance on coal,” said Knelsen. The two facilities represent the potential for up to 300 direct jobs,” with many more across forestry, construction, transportation, and local businesses. …Construction on two sites is expected to begin by mid-2026. …The facilities will also see the introduction of Canada’s first steam explosion pellet production process – developed by leading industrial systems engineers Valmet and capable of producing black wood biofuel pellets with 94% less carbon release than coal. …PowerWood Canada plans to open a second Alberta plant and has developed expansion plans for further plants in New Brunswick and Nova Scotia.
Manitobans should expect higher cabin and home insurance premiums in 2026, one expert says, after a 2025 fire season that destroyed at least 130 properties in the province and forced more than 32,000 people to leave their communities. Owners may also encounter new caps on payouts or exclusions in their policies that won’t cover certain hazards or parts of a property, or may find insurers will not provide coverage at all, said Jason Thistlethwaite, an assistant professor at the University of Waterloo’s school of environment, enterprise and development. “Insurance is a business, and they’re going to be looking to recoup those losses,” said Thistlethwaite, who studies the economic impacts of climate risk and natural disasters.
Nine more forestry companies are being supported to modernize, innovate and diversify their product lines and fibre sources to make more high-value, made-in-BC products, and help protect and create jobs. “It’s no secret our forestry sector is facing many challenges, making these investments timely,” said Minister of Forests, Ravi Parmar. …Through the BC Manufacturing Jobs Fund, the Province is contributing $2.5 million to plan or complete capital projects. For example, Canadian Bavarian Millwork and Lumber in Chemainus will receive as much as $1.4 million to help build its new facility. …Additional investments include:
CHEMAINUS, BC — Western Forest Products’ value-added division in Chemainus is receiving up to $7.5 million from the province to add two new continuous dry kilns to its manufacturing operations. The investment, from the province’s BC Manufacturing Jobs Fund, will allow WFP’s facility on River Road to expand the production of high-value products and create new opportunities for second-growth hemlock to produce higher-value products, as well as increasing the stability of the forest company’s operations on Vancouver Island. Minister of Jobs and Economic Growth Ravi Kahlon and Forest Minister Ravi Parmar joined Steven Hofer, CEO of WFP, to make the funding announcement, which is expected to strengthen Vancouver Island’s manufacturing sector. In addition, the ministers announced that 
For Crofton mill workers it was like getting a lump of coal in their stockings. Last week owners of the Domtar pulp mill announced they were shuttering the operation …Who and what is to blame is a complicated tangle, encompassing questions about the future of the forest industry in this province. …While we must confront these questions, the closure also highlights the dangers of community dependence on a particular operation, or even industry. While the workers will, of course, be the most affected, North Cowichan residents will also feel the pain from the mill closure, as it is the municipality’s single biggest taxpayer. ….We can all hope that there will still be a future for the Crofton mill site… but that’s in no way a given. The municipality will be facing some very difficult decisions about services and what it can afford. The larger community will also feel the loss of all of those well paying jobs.
NANAIMO — Exploratory discussions around potentially restricting industrial business activities in Nanaimo irked representatives of Nanaimo Forest Products (NFP), which operates Duke Point’s Harmac Pacific pulp mill. The narrowly approved Nov. 17 notice of motion from Nanaimo city councillor Paul Manly. …Harmac Pacific is actively attempting to rezone a pair of adjacent Phoenix Way lots involving a combined 244 acres bordering Cedar’s Cable Bay Trail. “If this bylaw were to become a reality, it would threaten the ability of our business to continue. …Mayor Leonard Krog is heavily opposed to the motion. “This motion basically says to anyone who wants to invest in this community ‘Don’t bother going to Nanaimo, don’t bother worrying about whether the land is zoned for heavy industry because Nanaimo wants to limit everything that might actually create some real jobs…’” …Harmac Pacific employs roughly 340 employees at its specialty pulp operation, which features a unique employee-owned ownership model.
Many laid-off workers at Western Forest Products’ Chemainus sawmill are increasingly frustrated with the company for the delays in the reopening of the mill, and with the state of the coastal forest industry overall. Brian Bull, Randy Robertson and Robert Joyce, who collectively have 95 years working in the forest industry, have been laid off since WFP temporarily curtailed operations at the mill on June 18. WFP recently announced that the shutdown at the mill, which employees approximately 150 workers, would extend into 2026 due to poor market conditions, high American lumber tariffs, and log-supply issues. Robertson said the company has not given the workers any indication of when the mill will reopen. …Bull said the mill’s workers’… employment insurance benefits are running out and they’re only making about half of the money they make at the mill even with the EI benefits. 
The province has retained an external consultant with expertise in the pulp and paper sector to assess options for the Crofton mill site, B.C.’s Forest Minister Ravi Parmar told North Cowichan’s council during a meeting on Dec. 10. Parmar also discussed the possibility of a new owner acquiring the property to resume pulp and paper production, or repurposing the property for another industrial use, the municipality said in a statement. “Given the significant implications for our community, we have requested that North Cowichan be actively involved at all stages of this work and in any discussions or decisions related to the future of the site,” North Cowichan said. North Cowichan Mayor Rob Douglas said they are continuing to work with the provincial and federal governments to secure transition funding and support for the mill workers.
The Court of International Trade on Dec. 18 again 
Maine timber companies are in line to receive substantial incentives to manage forests and grow healthier, more valuable trees. A $32 million award to the New England Forestry Foundation was recently finalized by the US Department of Agriculture. The funding package, through the Advancing Markets for Producers initiative, replaces similar funding provided under the “climate smart commodities” program. While there are some adjustments to the program, it achieves the same purpose, according to the foundation Deputy Director Andi Colnes. The grant will largely subsidize commercial and pre-commercial thinning, Colnes said. It will also provide funding to expand market opportunities, particularly for mass timber construction, she added. …According to Colnes, the program is able to cover about 50,000 acres of New England forests, mostly commercial timberland in Maine. The foundation said 23 commercial, conservation and public forest owners are already enrolled in the project.
NORTH CAROLINA — After reviewing public comments, the 
China’s pulp and paper sector is witnessing transformative growth with Huatai Group’s announcement of its monumental 16-billion-yuan investment in a fully integrated forest-pulp-paper project located in Yulin, Guangxi. 