The US lumber industry says new financial support pledged by Canada to domestic forestry companies risks deepening the neighbors’ long-running trade dispute, and may result in yet more import taxes. Last week Prime Minister Mark Carney promised as much as C$1.2 billion in loan guarantees, grants and contributions for Canadian sawmills to pursue product development and market diversification — in response to what he said were unjustified US import taxes. Three days later, US Department of Commerce separately confirmed it would more than double combined anti-dumping and countervailing duties on Canadian softwood lumber. …“We will absolutely be asking Commerce to look at whether companies received a distortive benefit from this package,” said Whitney Rolig, who acts as lead attorney for the US Lumber Coalition. …The Quebec Forest Industry Council said that “even the Department of Commerce has long since ceased to consider loan guarantees as subsidies,” and the aid package also aims to boost domestic demand.
The Liberal government has released a proposal for its new housing entity, laying out suggested loan offerings and other details ahead of the planned fall launch. …The Liberals said the new entity would develop and manage affordable housing projects and partner with builders for the construction phase, providing $10 billion in low-cost financing and capital to affordable home builders. …The BCH would also provide $25 billion in debt financing and $1 billion in equity financing to prefabricated home builders, with the Liberals saying the housing type can reduce construction times by up to 50 per cent and lower costs by up to 20 per cent. The entity would issue bulk orders of units from manufacturers to create sustained demand.
A $1.2-billion lifeline from Ottawa that’s being thrown to the forest industry is welcome news to northwestern Ontario mayors and the Canadian Wood Council. …The 37-member Northwestern Ontario Municipal Association (NOMA) called it a “significant and timely commitment to ensuring the long-term competitiveness of the forest sector” and comes at a crucial time when local jobs, economic growth and municipal stability is on the line. …“These measures recognize the vital role of forestry in Northwestern Ontario and across Canada,” said Marathon Mayor and NOMA president Rick Dubas in a statement, “helping our sector adapt to ongoing trade challenges, protect local jobs, and create opportunities for both Indigenous and non-Indigenous communities.”
President Donald Trump said the US will put a 35% tariff on some imports from Canada, escalating the tensions between two countries that have impaired one of the world’s largest trading relationships. The new rate represents an increase from the 25% tariffs Trump imposed in early March under an emergency law. …But the US administration kept in place an exemption for goods traded under the rules of the US-Mexico-Canada trade agreement. US automakers and other companies with integrated North American supply chains had pushed for that carve-out, which has allowed US importers to continue bringing in the bulk of Mexican and Canadian products without duties. Because of the USMCA exemption, the effective tariff rate on US imports of Canadian goods was around 5%. …Trump signaled that he would be open to further talks with Carney. …Hours before raising Canada’s tariffs, Trump agreed to extend current tariffs on Mexico for 90 days.
It will take time to fully understand the implications of a landmark court ruling that appears to place Aboriginal title in British Columbia above standard private property rights. But already, there’s a fierce political debate. The BC Supreme Court ruled that the Cowichan Tribes holds title over federal, city and private land in Richmond that it historically used as a fishing village. This title sits higher in the legal hierarchy than fee simple land rights of other current owners. The ruling could set a precedent that fundamentally changes the security of standard private property in B.C. …Eby’s comments hit at the core of the fallout — that with most of British Columbia identified by First Nations as traditional territory, the court ruling could scare away not only the general public but businesses considering investing in the province. …But Justice Young appeared to set a new precedent by calling Aboriginal title the “senior interest in land vis-a-vis the fee simple titles.”
For one local lumber mill, the federal government’s announcement of support for the Canadian softwood lumber industry is a step in the right direction. Nick Arkle, CEO at Gorman Brothers Lumber, said in his 50 years of working in the forestry industry, he hasn’t sensed a government that has been this supportive at a federal level. “Both federally and provincially, I’m seeing some major shifts,” Arkle said after Prime Minister Mark Carney visited the Gorman Brothers Lumber mill in West Kelowna to announce the federal government’s strategy to bolster Canada’s softwood lumber industry. …Arkle said Canada also has to figure out how to get along with its neighbours. Gorman Brothers has strong relationships with many customers in the U.S., said Arkle, and those customers can’t figure out why they’ve got this trade action going on because they want Gorman Brothers’ lumber.
A BC manufacturer that says it’s facing closure is accusing the provincial government of hypocrisy after the premier recently touted a product it had a hand in. BC Veneer Products provided the wood fibre that UBC designers used to fabricate a soccer ball out of innovative “wood leather,” something which Premier Eby promoted while on a June trade mission to Japan. …The problem, Gunia explained, is the company hasn’t been able to secure more logs to keep his plant and its 17 employees working. The forestry company he works with on Vancouver Island has already reached its maximum allowable cut for the year. The operator has another block it can harvest in January, but Gunia says that will be too late. …Gunia said his company’s troubles are particularly galling, given the emphasis the premier and the province have put on promoting value-added wood products.
Kalesnikoff Mass Timber has been recognized by the federal government for its role in advancing Canada’s housing goals. In June, Kalesnikoff opened North America’s first mass timber pre-fabrication and modular facility, expanding its product for use in multi-storey affordable and market housing, schools, workforce housing, and more. The facility aligns closely with Prime Minister Mark Carney’s new Build Canada Homes Program, which he discussed during a stop in Kelowna on Aug. 5. Carney plans to launch the program this fall, offering federal financing to homebuilders who use Canadian materials, as the government aims to develop around 500,000 homes per year. He praised Kalesnikoff as a catalyst for this effort, while announcing several other initiatives aimed at increasing housing supply and market diversification – including a $25-billion commitment for private builders who prioritize Canadian materials in housing and infrastructure projects.
British Columbia’s forestry leaders offer a mix of praise and caution following the announcement of federal aid for Canada’s lumber industry. While both welcomed the support, they emphasized the urgent need for fiber access and resolving the US trade dispute. B.C. Forestry Minister Ravi Parmar called the federal funding package “really good news” and a long-overdue show of federal support for a sector that has long felt sidelined in Ottawa. …Parmar emphasized that B.C., as the world’s second-largest exporter of softwood lumber, must receive a proportional share of the funding to modernize its mills and build new global partnerships. …B.C. Conservative forestry critic Ward Stamer, welcomed the funding as a positive sign of federal commitment but warned that the underlying problems plaguing B.C.’s forestry industry remain unaddressed. …“It shows the federal government understands how important the forest industry is not just to B.C., but to the whole country,” said Stamer.
VICTORIA — BC’s minister of jobs and economic growth is urging the federal government to stand firm and “negotiate hard” when trying to find a solution to tariffs imposed by President Trump. …He said he believes Carney and Canada-US Trade Minister Dominic LeBlanc are taking the right approach, “which is keeping their head down… and not getting distracted by the day-to-day swings of the president of the United States.” He said he would also highlight the importance of the softwood lumber industry for BC, which is just as crucial as the auto industry is to Ontario. …Both Eby and Kahlon have repeatedly argued that the long-running softwood lumber dispute with the United States should be part of a larger deal. Brian Menzies, executive director of the Independent Wood Processors Association, said he is “not very optimistic” that a future deal would also resolve the softwood dispute.
WASHINGTON — More Republican lawmakers are calling out Canada because of wildfires sending smoke billowing across the international border into their states. Wisconsin state Rep. Calvin Callahan has joined other Republican state lawmakers from Iowa, Minnesota and North Dakota in filing a formal complaint against Canada to the U.S. Environmental Protection Agency and the International Joint Commission. In a news release issued today, Callahan says that “if Canada can’t get these wildfires under control, they need to face real consequences.” He joins a chorus of Republican politicians at other levels of government who have been voicing concerns about Canada’s wildfires. Michigan Rep. Jack Bergman sent a letter to Canadian Sen. Michael MacDonald on Monday calling for stronger forest management policies and more accountability from Canadian officials. Michigan Rep. John James sent a letter to Prime Minister Mark Carney last week saying his constituents are choking on toxic wildfire smoke.
Wyoming’s few remaining lumber mills have been struggling, but a shift in federal and state timber policy might herald a new era for the industry here. Gov. Mark Gordon on Friday signed an executive order calling for an “increase of active forest management in Wyoming.” It mirrors President Donald Trump’s March 1 executive order for “immediate expansion of American timber production.” That might be the break that Wyoming logging companies and timber mills have for years been anxiously awaiting, Jenny Haider, of the Evanston-based Smith & Jones Timber Company, told Cowboy State Daily on Monday. The fourth-generation family-owned business has been going for 80 years but barely survived the past few, she said. …Trump’s order, coupled with tariffs on Canadian timber being imported into the US could be a game-changer for logging operations and mills in Wyoming. …Now, Wyoming timber companies are “using the word ‘hope’ again,” she added.
President Trump’s expanded reciprocal tariffs will not apply to any products loaded onto a vessel for transport into the US before 12:01 a.m. New York time on Thursday, according to guidance issued by 
A panel of appeals court judges on Thursday voiced deep skepticism with the Trump administration’s attempt to justify sweeping tariffs based on a national emergency. The US Court of Appeals for the Federal Circuit is hearing arguments Thursday over whether Trump’s sweeping tariffs are lawful. A group of small businesses and a coalition of states are asking the appeals court to invalidate the bulk of Trump’s tariffs, arguing that Trump overstepped his power when he invoked the rarely used International Emergency Economic Powers Act (IEEPA). At the start of Thursday’s hearing, judges on the appeals court panel questioned why Trump is relying on a law that has never been used to justify tariffs, saying that the law itself never mentions the word “tariffs” and voicing concern that the president justifying the unilateral action based on an emergency could amount to “the death knell of the Constitution.” 
KINGSPORT, Tennessee — Vera Gilmer, a 30-year Kingsport resident, arrived at the Kingsport Economic Development Board meeting for the update on Domtar’s packaging mill. She shared her frustration with the board about the mill’s odor over the last month. …Gilmer stressed that the smell has worsened recently. …Domtar mill manager Troy Wilson gave an update on the digester’s construction and addressed what could possibly worsen Domtar’s odor in the meantime. …Wilson said worsening odor is likely attributable to Domtar’s current wastewater treatment system, a lagoon system which he described as “antiquated” and sensitive to the weather. He also shared that the rainstorm that passed over Kingsport Wednesday last week put a strain on the wastewater system. …Domtar has spent $20 million on the digester so far. At its peak, the digester project will employ 140 people, according to Wilson.
The Maine State Chamber of Commerce has been following the Trump administration’s actions on tariffs since the start of the year, said President and Chief Executive Officer Patrick Woodcock. …Woodcock said Monday that some individual companies and industries are already seeing a “dramatic impact.” For example, he said lumber product prices have increased. … In Maine, “our forest products industry is the one that is most affected with these specific industry, sector-level tariffs,” Woodcock said. The state imports 2.3 million tons of wood products annually, most of which comes from Canada, according to a Maine Forest Service