Bryan Smith
Preliminary September US contract pulp prices were flat across paper-grade bleached softwood kraft (BSK) and bleached hardwood kraft (BHK) market pulp, while fluff pulp declined by as much as $30 per tonne during a time when offshore erosion continued. As the industry prepared for a fall season that typically sees demand improve during a time when maintenance downtime keeps producer inventories in check, market participants cast an eye on spot markets globally for signs of what’s next. …US northern bleached softwood kraft (NBSK) pulp preliminary September effective list prices held unchanged at $1,570 per tonne, according to Fastmarkets surveying. Southern bleached softwood kraft (SBSK) was also flat, with the preliminary list at $1,505 per tonne. …The announced closures of Canfor and Domtar market NBSK mills in Canada have market participants wondering if prices could recover once the physical impact of closures takes place. So far, they have not had much impact.
Lumber futures fell below $550 per thousand board feet, reaching their lowest level in nine months, as elevated borrowing costs continued to weigh on demand. The US housing market remains tight, with mortgage rates near their highest level in over a year and showing no sign of easing after the Federal Reserve hiked its key policy rate, weighing on demand from prospective homebuyers. Building permits also fell 2.7% over the month, although a 7.6% increase in lumber-intensive single-family housing starts in August. Provided an offsetting pressure, US-Canada trade talks fell through, raising concerns over lumber supply.
Canadian wood product prices fell 1.2% from July but remained up 8.6% from a year earlier, after rising 6.4% the prior month, Statistics Canada reported. Canada’s broader factory-gate prices rose 1.3% from July and were up 13.5% from a year earlier. Wood product prices trailed Canada’s total Industrial Product Price Index by 4.9 percentage points year over year, leaving August’s monthly gain short of the wider rise in factory-gate prices.
Consumer inflation held steady at 3% last month compared to a year earlier as higher rent and travel costs offset a slowdown in rising prices for gas and groceries. Statistics Canada says the annual rate of inflation was unchanged from July. The agency says gasoline costs continued to increase in August but at a slower pace, as the conflict in the Middle East continued to weigh on prices. Excluding gasoline, consumer prices rose 2.4% last month compared to a year earlier, up from 2.2% in July. …“Headline inflation remained elevated in August, but core measures continued to show only limited evidence that high energy prices are spilling over into wider inflationary pressure,” said CIBC economist Andrew Grantham. …“With the economic outlook clouded by U.S. tariffs and related uncertainty we think that the Bank of Canada should, and will, keep interest rates on hold in October meeting”.
Softwood roundwood supply has remained essentially flat since 2000 despite continued growth in overall roundwood production, and is forecast to increase by only about 0.5% annually through 2035. Demand for construction timber, packaging and biomass is expected to continue growing faster than supply. The result is a progressively tighter supply-demand balance, with increasing pressure on the availability and real prices of softwood logs. …North American softwood roundwood supply has declined by almost 20%, while Europe/Russia and the rest of the world have each increased by about 18%.
Canada needs to roughly double the rate that new homes are being built in order to restore housing affordability to pre-pandemic levels over the next decade, according to the Canada Mortgage and Housing Corporation (CMHC). The CMHC released its fall 2026 housing supply report on Thursday, which said Canada needs to build hundreds of thousands more homes annually in order to narrow a significant long-term supply gap, with some major markets struggling more than others. According to the report, Canada is currently on pace to build about 231,000 homes per year until 2036, but would need to build between 417,000 and 469,000 homes annually in order to narrow the housing supply gap and see home prices return to 2019 levels. A housing supply gap is the difference between the perceived demand for homes to rent or buy and the number of homes actually available in the market.
U.S. 50% duties on covered Canadian pulp and paper products meet Canada’s new tariffs of up to 50% on U.S. tissue, paper and dissolving pulp. …The flashpoint for pulp and paper came after the U.S. imposed additional duties under Section 338 of the Tariff Act of 1930 on covered Canadian goods, with the measures taking effect Aug. 22. Among the affected products are: Chemical bleached softwood pulp, including NBSK, a key strength fiber used in U.S. tissue and towel production, and Toilet or facial tissue stock” and other specified household and sanitary paper products used by U.S. converters. …The tariff shock is also affecting corporate planning. …The broader concern for tissue manufacturers is the potential combination of higher fiber costs, changing sourcing strategies and pressure on margins. …Competitive pressure could limit how much of the increase is passed through immediately, but prolonged tariffs could eventually put pressure on manufacturing costs, tissue prices and product economics.
Lumber futures fell below $555 per thousand board feet, reaching its lowest level in nine months, as retaliatory tariffs from Canada on US goods took effect, weighing down demand. Ottawa had announced counter-tariffs of 25% on US lumber and 50% on Plywood following US tariffs on several lumber-related goods. US forestry groups have long accused Canada of distorting the market, as 94% of Canadian forestland is publicly owned compared to 58% privately owned in the US, allowing Canadian lumber to be sold at a lower price. The fallout is hitting the forest sector of both countries, as selling lumber prices went up immediately after the news, pushing demand lower. Fall is usually a time for renovations, however, elevated prices weighs on the sector. Meanwhile, US housing remains subdued, with lumber-intensive single-family construction spending falling 3.2% in July, while elevated mortgage rates continue to weigh on homeownership.
OTTAWA — Canada’s trade surplus narrowed sharply in July as exports of energy and metal products shrank while imports rose, just weeks before Washington’s new 50% tariffs begin to show up in statistics. The trade surplus was C$769 million (US$557 million), compared with a four-year high surplus of C$4.2 billion posted a month ago, Statistics Canada said. Exports dropped 2.3%, while imports increased 2.2%. Amid an escalating trade dispute with U.S. President Donald Trump’s administration, Canada has been seeking to reduce its dependence on its neighbour and largest trading partner. The U.S. accounted for 66.35% of Canada’s total exports in July, down from 69.39% in June and 72.64% a year ago. However, Canada’s import dependence on the U.S. has only narrowed to 59% in the last 12 months compared with 62% in 2024. However, Washington’s latest duties, imposed last month, will provide a tougher test for exporters in the coming months.
Boosting trade with a more diverse array of international partners would only plug part of the hole in Canada’s economy if the U.S. were to withdraw from the North American trade pact, says a new Deloitte Canada report. So Canada must look at measures beyond trade diversification to help make up the difference, such as removing interprovincial trade barriers and fostering new industries, wrote the authors of “
Bank of Canada Governor Tiff Macklem says inflation risk is on the rise, with higher energy costs topping Canada’s incoming dollar-for-dollar tariffs on U.S. goods as the biggest potential driver of rising prices for consumers and businesses. Macklem’s remarks on Wednesday came after Canada’s central bank held its benchmark interest rate steady at 2.25 per cent, as widely expected by economists. The central bank lowered its policy rate to its current level in October of last year. This latest announcement marks seven consecutive times it has left its trend-setting policy rate unchanged. “The counter-tariffs, and indeed the U.S. tariffs … will add costs for some businesses,” Macklem told reporters in Ottawa. “These tariffs are very steep, but they are applied to a relatively narrow base.”The bigger issue, he said, is the war in the Middle East.
The ten largest softwood lumber import markets imported 16.6 million m3 in April-June 2026. Canada increased its share of U.S. softwood lumber imports by 6 pp, while Germany lost 3 pp of U.S. softwood lumber imports, according to Lesprom Analytics. The ten largest suppliers shipped 15.0 million m3 and held 90% of imports across the ten largest import markets. Canada gained 2 pp of Chinese softwood lumber imports. In the United Kingdom, Germany gained 4 pp and Finland lost 3 pp of U.K. softwood lumber imports. Russia shipped 474 thousand m3 less across the ten largest import markets, followed by Germany at 428 thousand m3 less and Austria at 370 thousand m3 less. In the first half of 2026, the ten largest import markets imported 34.7 million m3. Canada shipped 1.8 million m3 less and Russia shipped 1.2 million m3 less than in the first half of 2025.
Canadian home resales have been on a winning streak since April, inventory has levelled off, and prices appear to be stabilizing or at least falling more slowly. We see room for further gradual progress ahead as improved affordability and brightening job prospects shore up confidence, increasingly unlocking pent-up demand and slowly draining piled up inventory. But, the path is unlikely to be smooth or uniform across the country. The prolonged market correction in Ontario and BC will take time to heal. And, more resilient regions have little upside left amid stable or rising interest rates and stagnant population growth. …We project home resales and the benchmark price index to fall -3.6% to 453,200 units and -2.3% to $794,200, respectively, this year mainly reflecting weakness this winter and early spring. Recovery will become more visible by 2027 when we forecast transactions to grow 6.7% to 483,600 units, and the benchmark value edges higher by 0.8% to $800,700.
The Bank of Canada is likely to hold borrowing costs steady, as an escalation in the trade war with the U.S. threatens the economic recovery while adding to inflation risks. Economists and markets expect policymakers led by Governor Tiff Macklem to keep the policy rate at 2.25% on Wednesday. It would be the seventh straight hold — but the mood surrounding the country’s relationship with its top trading partner has changed dramatically since the last one, in July. …“Heightened growth risks from new U.S. tariffs and inflation risks from high oil prices likely created more discomfort for the Bank of Canada since their last meeting in July, but not enough to push them off the sidelines,” Nathan Janzen and Claire Fan, economists at Royal Bank of Canada, wrote. Tariffs will add to inflation while weighing on growth, reviving a dilemma Macklem and his governing council have highlighted throughout the trade war.
As the dust settles in this tit-for-tat tariff row, what will be affected most on both sides of the border? …Construction materials such as steel, aluminium as well as lumber wood have had tariffs in place before the latest escalation, though Canada has now matched US rates on the metals at 50%. Carney has also imposed import taxes on several US wood products, such as plywood, and even screws used to fix timber together. That means building firms that import such materials will face higher costs and may choose to pass those on through higher prices – pushing up the cost of homes, for example. The Forest Products Association of Canada says tariffs would “raise costs on both sides of the border”, while on the US side, Bill Owens, chairman of the National Association of Home Builders (NAHB) urged Trump to make building materials exempt from his tariff agenda due to an “ongoing housing affordability crisis”.
New US tariffs on Canadian wood products threaten to raise construction costs for US homebuilders and squeeze supply chains already stretched thin as a potentially long and bruising trade war gets underway. …“Basically, the fact that there’s import tariffs on Canadian shipments to the US and vice versa is going to raise the cost of production for everyone, ultimately through the housebuilder to the consumer,” wood market expert Russ Taylor told Mortgage Professional America. …The full impact on homebuilders could take a few months to become clear but the direction of travel is clear, he said. “The builders either can’t find product or the prices go higher for certain products, and then that starts to influence homebuilders,” he said. “Probably not right away – everyone’s got inventory to sell – but certainly looking ahead a couple of months from now, that’s when some shortages or stockouts could start to occur.”
“Tariffs on Canadian plywood will exacerbate the pressures already weighing on the entire construction sector, with the housing market poised to bear the heaviest burden,” AIA’s chief economist Richard Branch said. “For some time now,” Branch added, “a series of destabilizing factors has clouded the road ahead, making it difficult for developers and architecture firm leaders to plan future projects with confidence. When leaders in construction can’t make informed decisions, momentum stalls—and construction activity slows further.” …Thirty-six different types of plywood are impacted by Section 338 duties. The NAHB said the tariffs will increase housing costs and slow down construction. 
KANSAS CITY, Missouri — A 50% tariff on goods coming from Canada is officially in effect after negotiations crumbled over the weekend, putting a higher price on a large list of imports including lumber and plywood. Pete Peterson, manager at Sutherlands, said prices went up as soon as the news hit. “We don’t want to raise the prices, but we’re just kind of forced to”. Peterson has worked at Sutherlands for over a decade and has seen tariff impacts before. …“Once it’s landed here, it is what it is. Prices are adjusted to what the future prices are going to be. So homeowners, they’re doing less remodeling and stuff.” …“Spring and fall are your renovation times for outdoor projects and stuff. We’re seeing a definite slowdown and people’s need for just everyday projects. Decks, fixing barns, whatnot. Construction, that’s year-round. But homeownership, that’s where our type of business really feels it.”
MAINE — Softwood lumber from Canada is already tarriffed at 45% — this round of tariff won’t impact softwood – but it will impact a range of other building supplies – cement, steel, aluminum, copper products – and a range of lumber products like plywood, fiberboard, and oriented strand board. “Right now the cheapest prices is out of Canada and a lot of this product comes out of Canada.” All of these are products that are known for their resilience – used in everything from custom cabinets to exterior siding. Hillside Lumber co-owner Mike Knight says the tariff increase could wind up causing increased demand for American lumber. “They can’t keep up with the demand if we cut off Canada altogether.” That in turn, could lead to higher prices for domestic products too. “Not that I’m against having everything here in the US but I think if the timing is off.” …The increase trickles down, ultimately hitting the home buyers.
Canadian northern bleached softwood kraft (NBSK) pulp has gone through a difficult cycle over the past three years. Following exceptionally strong prices after the pandemic, the market weakened as Chinese demand slowed, producer inventories grew and new hardwood pulp capacity came online in South America. …China remains the single most important external influence on Canadian pulp prices. As the world’s largest importer of market pulp, changes in Chinese inventories, paper production and economic growth quickly move global prices. Strong Chinese buying typically supports Canadian producers, while periods of inventory reduction or weak manufacturing place immediate downward pressure on pulp markets. …Recovered (recycled) fibre has become an increasingly important part of the industry. …The industry’s greatest challenge is increasingly on the supply side. …Over the next two to three years, the outlook for NBSK is cautiously positive. Unlike hardwood pulp, very little new softwood capacity is being built globally. [to access the full story, a Globe & Mail subscription is required]
There have been three price increase announcements by the majority producers of containerboard in just five months; most recently PCA’s announcement of a $140/ton (liner and medium) increase effective September 1, 2026; IP announced $80/ton for September 1, 2026, and Smurfit Westrock announced $100/ton. These latest announcements all took place within 3 days of each other. AICC believes these increases are without economic justification based on current rawmaterial inputs and economic data. Producers cite (as they have, again without objective justification,and unconvincingly in such a relatively short period of time in between them) economic need, high operating rates (e.g., Inflation, fuel, labor, insurance), and tight supply to justify these increases. AICC is skeptical of these reasons in the current containerboard and corrugated market. Arguably, the increases are reflective of a small group of producers having market dominance.
NEW YORK, NY — Mercer International reported second quarter 2026 Operating EBITDA of negative $21.0 million, a decrease from negative $20.9 million in the same quarter of 2025 and positive $7.8 million in the first quarter of 2026. In the second quarter of 2026, net loss was $76.0 million compared to $86.1 million in the same quarter of 2025 and $52.0 million in the first quarter of 2026. Mr. Juan Carlos Bueno, Chief Executive Officer, stated: “Our pulp sales realizations remained steady this quarter, as continued economic uncertainty delayed market recovery. Our second quarter results were also weighed down by rising European fiber costs, driven by regional supply shortages and intense competition for sawmill residuals from energy producers. As a result, we recognized a non-cash impairment of $29.0 million primarily against pulp and fiber inventory.
BURNABY, BC — Interfor reported its second quarter of 2026 results. The company recorded net earnings in Q2’26 of $1.0 million, compared to a net loss of $63.3 million, and net earnings of $11.1 million in Q2’25. Adjusted EBITDA was $92.3 million on sales of $804.4 million in Q2’26 versus $30.7 million on sales of $643.2 million in Q1’26 and Adjusted EBITDA of $17.2 million on sales of $780.5 million in Q2’25. ….Lumber production of 927 million board feet was up 71 million board feet versus the preceding quarter driven primarily by the ramp up of the recently rebuilt Thomaston, GA sawmill. …The Company is well positioned to navigate this volatility with a diversified product mix in Canada and the US, with approximately 65% of its total lumber produced and sold within the US Ultimately, only about 20% of the Company’s total lumber production is exported from Canada to the U.S. and exposed to duties, tariffs or other potential trade measures.
VANCOUVER, BC — West Fraser Timber announced that it has entered into a new $500 million three-year term loan, partial proceeds of which will be used to retire its existing $300 million term loan due in 2028. The new term loan matures in September 2029. The Company’s $1 billion syndicated credit facility remains outstanding on existing terms and has approximately four years remaining to its May 2030 maturity. …”Entering into a new $500 million term loan strengthens our near-term liquidity position and provides additional financial flexibility,” said Sean McLaren, President and CEO, West Fraser. …The Company has also declared a quarterly dividend of US$0.32 per share on the Common shares and Class B Common shares in the capital of the Company, payable on October 19, 2026 to shareholders of record on September 29, 2026.
Statistics Canada’s August Labour Force Survey showed British Columbia shed a net 5,500 positions last month, lifting the provincial unemployment rate to 6.5 per cent from 6.2 per cent in July. The result places B.C. 0.1 percentage points above the national average, even as Canada as a whole lost a net 42,000 jobs during the same period. Bryan Yu, chief economist at Central 1 Credit Union, attributed the losses to two sustained pressures: a prolonged absence of meaningful private-sector investment growth and a shrinking population as temporary residents depart following federal immigration policy changes. Educational services accounted for the steepest single-sector decline, with roughly 6,300 positions lost. …Construction and retail and wholesale trade each recorded significant losses as well, with the latter shedding approximately 3,800 jobs. …Natural resources lost 2,600 jobs provincially and continued to record the largest year-over-year contraction at 17.2%, driven by mill closures and curtailments across the province.
VANCOUVER, BC — Conifex Timber reported results for the second quarter ended June 30, 2026. EBITDA was negative $6.3 million for the quarter compared to EBITDA of negative $7.7 million in the first quarter of 2026 and negative EBITDA of $3.2 million in the second quarter of 2025. Net loss was $9.5 million or the quarter versus a net loss of $9.4 million in the previous quarter and a net loss of $8.3 million in the second quarter of 2025. …Revenues from lumber products were $19.0 million in the second quarter of 2026, representing an increase of 27% from the previous quarter and a decrease of 31% from the second quarter of 2025. … Electricity production contributed revenues of $2.8 million in the second quarter of 2026, $5.2 million in the previous quarter, and $3.6 million in the second quarter of 2025.
VANCOUVER, BC — Western Forest Products reported their second quarter, 2026 result. Q2, 2026 revenue was $239.6 million, compared to $201.5 million in Q1, 2026, and $289.1 million in the second quarter of 2025. …Adjusted EBITDA of $0.4 million in the second quarter of 2026, as compared to $0.5 million in the same period last year. Adjusted EBITDA in the second quarter of 2026 included a $2.3 million expense related to share-based compensation due to a 20% increase in the Company’s share price, compared to a $0.3 million expense in the same period last year. Net income was $10.5 million in the second quarter of 2026, as compared to a net loss of $17.4 million for the same period last year. Results in the second quarter of 2026 included a $31.3 million property insurance recovery from our Columbia Vista sawmill. …Both the North American Japanese lumber markets are expected to be relatively stable through most of the third quarter of 2026.
Single-family housing starts rose in August but are down for the year and are expected to weaken even further, as homebuilders slow production in the face of higher construction costs and hesitant consumer demand. While total new residential construction fell 2.6% in August, this monthly decline came amid a steep 21.7% pullback in multifamily starts, according to data released Thursday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD). Housing starts, when accounting for both single-family and multifamily, slipped to a seasonally adjusted annual rate of 1.275 million units, 1.2% below the August 2025 rate of 1.291 million units. On the other hand, the seasonally adjusted annual rate of single-family starts in August grew 7.6% to 918,000. At first glance, this monthly growth may seem to signal strength, but single-family starts between January and August were 4.9% below the rate experienced during the same period in 2025, reflecting a slowing construction pipeline.
WASHINGTON — US single-family homebuilding increased in August, but a drop in permits for future construction suggested the improvement was likely temporary as rising inflation because of the war in the Middle East boosts mortgage rates. Single-family housing starts, which account for the bulk of homebuilding, jumped 7.6% to a seasonally adjusted annual rate of 918,000 units last month, the Census Bureau said. They rose 5.2% on a year-over-year basis in August. Single-family building permits fell 1.8% to a rate of 878,000 units in August. They increased 1.3% on a year-over-year basis. Mortgage rates have surged, tracking longer-term US Treasury yields as the US-Israeli war with Iran drove oil prices above $100 a barrel. Bond yields have also risen. The yield on the benchmark 10-year Treasury note is hovering around 5.0%. …The average rate on a 30-year fixed-rate mortgage was 6.76% last week, the highest level in more than a year.
AAA says the national average for diesel reached an unprecedented $5.98 per gallon on September 10, a new high for a fuel whose effects stretch well beyond filling stations. The increase is likely to reach people who never purchase diesel directly, showing up instead in the cost of everyday items and in higher home-heating expenses. More broadly, diesel is a key fuel for trucks and ships, and Grist described how rising diesel costs can feed into the prices of essentials including groceries and lumber. Compared with late February, when the United States and Israel went to war with Iran, AAA figures show diesel prices are about $2.31 higher. Grist also noted that the last major high point came in 2022, when Russia’s invasion of Ukraine helped send diesel to $5.82 per gallon. David Ortega at Michigan State University, explained how these increases typically move through the economy.
WASHINGTON — U.S. inflation accelerated last month as gas prices spiked in the wake of renewed fighting in the Middle East, underscoring the affordability challenges that are top of mind for many voters with midterm elections now just seven weeks away. The consumer price index rose 3.4% last month compared with a year ago, the Labor Department said Friday, the same as in July. But on a monthly basis, inflation quickened, as costs jumped 0.4% from July to August, up from an increase of just 0.1% the previous month. The figures show that inflation remains stubbornly elevated, more than five years after prices first soared as the economy emerged from the COVID pandemic. Persistent inflation has presented a major challenge for the inflation-fighters at the Federal Reserve. …The larger-than-expected monthly increase in core prices will likely embolden those Fed officials who have pushed for the central bank to lift its benchmark interest rate.
Mortgage rates increased in August as Treasury yields remained elevated amid persistent inflation concerns. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.67% in August, up 13 basis points (bps) over July. Since the conflict in the Middle East began, the 30-year mortgage rate has jumped by more than 60 bps. The average 15-year rate averaged 5.98% in July, up 7 bps from July and 55 bps from the end of February. Mortgage rates are now roughly on par with their levels a year ago, with the 30-year rate 6 bps higher and the 15-year rate 24 bps higher. The 10-year Treasury yield, a key benchmark for long-term borrowing, rose 10 bps to an average of 4.68% in August, Yields rose in the later part of the month amid a broader selloff in global government bonds. 
NEW YORK
Construction spending during July 2026 was estimated at a seasonally adjusted annual rate of $2,157.6 billion, 0.5 percent below the revised June estimate of $2,167.7 billion. The July figure is 3.8 percent below the July 2025 estimate of $2,242.6 billion. During the first seven months of this year, construction spending amounted to $1,244.6 billion, 3.5 percent below the $1,289.7 billion for the same period in 2025. …Spending on private construction was at a seasonally adjusted annual rate of $1,614.2 billion, 0.5 percent below the revised June estimate of $1,622.9 billion. Residential construction was at a seasonally adjusted annual rate of $859.0 billion in July, 1.3 percent below the revised June estimate of $870.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $755.2 billion in July, 0.4 percent above the revised June estimate of $752.4 billion.
The brewing tension between Canada and the US has escalated into a full‑blown trade war, disrupting cross‑border supply chains, driving up the cost of construction materials, and threatening to throw the timelines of major housing projects into disarray. …Developers already grappling with labour shortages, high interest rates, and soaring land costs, now face a destabilizing force that could impact every aspect of the construction process. …“The construction industry continues to build through uncertainty, but contractors are facing increasing pressures in getting the job done,” said Rodrigue Gilbert, President of the Canadian Construction Association. …Meanwhile, the US housing market is feeling the shock as well. …The long‑term implications of the trade war reach far beyond construction sites and border checkpoints, according to a report by the Canadian American Business Council by Oxford Economics. The analysis underscores the depth of Canada–US economic integration and how mutually beneficial that relationship has been for decades.
While North American softwood lumber consumption has declined in 2026, prices have remained surprisingly resilient due to constrained supply, reduced production, and persistent structural demand for housing despite ongoing affordability challenges. …On one hand, builders continue to face affordability concerns, elevated mortgage rates, and cautious consumers. On the other hand, lumber prices have generally strengthened throughout 2026, despite year-over-year declines in consumption. Here’s what the latest market indicators are telling us. …The U.S. housing market continues to balance between long-term demand for new homes and short-term economic pressures. …These trends suggest that, while housing demand hasn’t disappeared, the market is adapting to economic realities rather than expanding uniformly. …Although North American lumber consumption has declined year over year, production has also contracted. Reduced output across both the United States and Canada has helped keep supply relatively tight, supporting pricing across many lumber grades.
CAPITAL REGION, New York — Starting next week, Canadian retaliatory tariffs are taking effect. The tariffs are up to 50% on American products. The tariffs are projected to impact $20 billion worth of American goods; materials like lumber, steel, and dairy could be the hardest hit. We see data coming out of the Fed that shows that 90% of the costs of tariffs are passed along to, you know, U.S. businesses and consumers,” said Justin Wilcox, of Upstate United. “That’s having an impact on people’s pocketbooks at a time when they can least afford it.” …The National Association of Home Builders predicts a $10,000 to $14,000 increase per home. …According to an April 2026 report from the New York State Comptroller, Canada is the state’s most significant trading partner. In 2025, exports to Canada declined by $3.8 billion due to tariffs.
BUFFALO, New York — The changing tariffs policies for the U.S. and Canada are raising cost and supply issues for the home building and remodeling field with possible impact on their customers for planned and future projects… said a contractor and the operator of a lumber and building supplies business. …Domenic Cortese, of Cortese Construction, said “The implications to a new home on the costs of that home are about $10,000 more because of the tariffs. You know you’re probably going to be looking at $2,000 or $3,000 more in lumber costs for a deck just because of the tariffs.” …”The problem is we don’t have the infrastructure in place to ramp up productivity to be able to supply lumber for our needs.” …Lenco’s Stephen Coppola said, “We love the Canadian lumber. Our customers tend to like it quite a bit. But we’ve been very active in trying to find other sources.”
The EU’s appetite for wood pellets is being fed from outside the bloc, with member states importing 451,880 tonnes from non-EU countries in July, up from 345,074 tonnes a year earlier. That is according to Eurostat, the European Union’s statistics office, whose first estimates for July were published on Tuesday 15 September and remain provisional. France brought in 115,845 tonnes from outside the EU in July, up from 72,181 tonnes in July 2025, and Italy’s imports rose to 76,051 tonnes from 39,172. The Netherlands remained the biggest buyer at 124,591 tonnes, while Denmark’s imports fell to 31,764 tonnes from 50,889. Latvia took 31,022 tonnes, in a month for which Eurostat shows no Latvian figure a year earlier. Imports from outside the EU reached 555,573 tonnes in June, the most in any month since January 2024, and July’s total was still higher than the 392,192 tonnes of July 2024. 
