Tariffs, Lumber Duties and COFI Conference Wrap-up:
On Trump’s Tariffs:
- Stock market reverses course on potential 90-day tariff pause
- Stocks swing down, up, down again as markets assess damage
- Global markets plunge on Trump’s tariff turmoil
- Tariff chaos puts White House on defence as markets tumble
On Softwood Lumber Duties:
- US set to significantly hike softwood lumber duties against Canada
- BC Premier calls out attack, plans to meet with Mark Carney on duties
- Alberta and Ontario warn of rising housing costs due to lumber duties
- US Lumber Coalition applauds the enforcement of US trade laws
- Tariffs and duties will hurt housing affordability, raise risk of recession
Feature presentations at the 2025 COFI Conference:
- BC Premier Eby and Minister Parmar on tariffs, timber and transformation
- The Elephant in the Room isn’t just fibre, its the system itself
- The Next 4 Years: US relations and forest products trade
- Summary Wrap-up: all the conference sessions in chronolgoical order
In other news: Trump orders sweeping reforms, half of national forests open for logging; FSC extends suspension of Asia Pulp & Paper; Canada invests in several Kamloops-based forestry initiatives; and BC takes action to improve wildfire resiliency.
Finally, together with the Western Canada SFI Implementation Committee, we bring you our third annual Wildfire Resilience and Awareness Week. A series of stories focused on wildfire mitigation and best practices complemented by a Wildfire Resource Page.
Kelly McCloskey, Tree Frog News Editor
The US is set to more than double the duty it charges on softwood lumber imports from Canada, with the planned new rate set at 34.45%, up from the previous 14.54%. …New softwood lumber duties were long-feared amid the growing trade war between Canada and the US, and would be the latest blow to BC’s beleaguered forestry industry, which has seen thousands of workers laid off over the last few years. BC Premier David Eby condemned the planned duty hike as an “attack on forest workers and British Columbians” in a statement on Saturday. While Canada may have been spared additional tariffs from the US on Wednesday, anxiety around levies on BC’s softwood lumber industry remains high. …Under the U.S. Tariff Act, the Department of Commerce determines whether goods are being sold at less than fair value or if they’re benefiting from subsidies provided by foreign governments.
Wall Street’s main indexes reversed course and moved sharply higher after White House economic adviser Kevin Hassett said in an interview that President Donald Trump was considering a 90-day tariff pause on all countries expect China. At 10:20 a.m. the Dow Jones Industrial Average rose 333.50 points, or 0.87%, to 38,614.49, the S&P 500 gained 79.99 points, or 1.69%, to 5,154.07 and the Nasdaq Composite gained 362.69 points, or 2.33%, to 15,950.47.
US stocks opened lower Monday as markets around the world tumbled over concerns about how President Trump’s sweeping tariffs might upend the global economy and stymie US economic growth. Markets opened in bear market territory – a decline of 20% from a recent peak – after a historic rout in Asia and massive losses in Europe. The Dow fell 1,200 points, or 3.2%. The broader S&P 500 was 3.4% lower and opened in bear territory. The Nasdaq Composite slid 3.96%. The S&P 500 hit a record high less than seven weeks ago, on February 19. If the index closes in bear market territory, that would be the second-fastest peak-to-bear market shift in history. Wall Street’s fear gauge has surged to levels not seen since the Covid-19 pandemic as investors fret over the market’s next move. CNN’s Fear and Greed Index has slumped to its lowest levels this year.
US trade wars could have major implications for an already tenuous housing market….A price hike on building materials will likely make building affordable housing feasible, an approach that many real estate experts believe is crucial to resolving the housing market gridlock. The housing sector comprises over 15% of the US GDP and will be heavily impacted by tariffs on building materials such as lumber and steel. And 70% of imported lumber comes from Canada. The NAHB noted that the tariffs are “not only expected to raise the cost of building materials, which are up 34% since December 2020, far higher than the rate of inflation, but also wreak havoc on the building material supply chain. In turn, this will put even more upward price pressure on building materials.” …Uncertainty stemming from the newly unveiled tariffs has eroded consumer and investor confidence, which has, in turn, diminished homebuyer optimism.
The federal government is pitching in more than $180,000 for a Kamloops-area study to determine whether rehabilitating wildfire-damaged landscapes can provide an economic opportunity through carbon credits. It’s part of a total $20 million the federal government will be injecting into B.C.’s forestry sector. Jonathan Wilkinson, minister of energy and natural resources, said 67 projects in the province will receive funding, including a number of Kamloops and Shuswap-area initiatives. The Secwepemcul’ecw Restoration and Stewardship Society will receive $184,355. …Tolko Industries will be getting $400,000 in federal funding to conduct further research into a finger jointing process for parallel laminated veneer products produced at its Heffley Creek facility. Local Indigenous groups are also set to receive funding as part of the Indigenous Forestry Initiative program. …And as part of the Global Forest Leadership program the Wood Pellet Association of Canada based in Revelstoke is set to receive $180,000 to help advance international standards for wood pellets.
B.C.’s wildfire season is fast approaching, and experts are warning that urban areas of the province – including Metro Vancouver – may be at risk as fires grow more frequent and intense. A panel of experts – including bestselling author of Fire Weather John Vaillant and UBC Centre for Wildfire Coexistence co-director Dr. Lori Daniels – spoke about urban wildfire risks at the university’s Vancouver campus Thursday night. Daniels told CTV News a combination of climate change, forest management practices and urban expansion into fire-prone areas has contributed to a rise in the amount of land and structures burned in recent years. While in some parts of the province – such as the Okanagan Valley – there is a sense that it’s “not if, but when” a destructive wildfire will hit, Daniels said Metro Vancouver is also vulnerable.
The Province is taking action to adapt B.C.’s forests to ensure long-term sustainability and good-paying jobs by enlisting BC Timber Sales (BCTS) to play a larger role in reducing wildfire risk and enhancing forest and community resilience through its operations. This work is increasingly urgent given the threat of sector-specific tariff threats coming from the United States. … BCTS manages forest harvesting on more than 20% of B.C.’s public land. In January 2025, the Ministry of Forests initiated a review of BCTS, undertaken by an expert task force, to create pathways for a stronger, more resilient forestry sector. A progress update was announced at the Council of Forest Industries convention on Friday, April 4, 2025. “We have all witnessed the impacts of wildfire on B.C.’s communities, and we are uniting all parts of my ministry to tackle this challenge head on,” said Ravi Parmar, Minister of Forests.
The U.S. Department of Agriculture on Friday announced will allow logging in national forests, which will help spur timber production amid reciprocal tariffs on other nations. A memo by USDA Secretary Brooke Rollins follows an executive order by President Donald Trump last month to expand timber production. There are 154 national forests covering approximately 188.3 million acres. … “Healthy forests require work, and right now, we’re facing a national forest emergency,” Rollins said in a statement. “We have an abundance of timber at high risk of wildfires in our National Forest. “I am proud to follow the bold leadership of President Trump by empowering forest managers to reduce constraints and minimize the risks of fire, insects, and disease so that we can strengthen American timber industry and further enrich our forests with the resources they need to thrive.” …The Sierra Club said the order was a giveaway to the logging industry.
FSC is extending the suspension of the Asia Pulp and Paper (APP) Memorandum of Understanding on the implementation of the FSC Remedy Framework until the end of June 2025. The extension of the suspension is due to a conflict of interest identified between Domtar and the law firm FSC identified for conducting the legal review of APP and Domtar’s corporate groups. FSC is identifying a different independent, third-party law firm to conduct this legal review. In January 2025, FSC suspended APP’s remedy MoU until the end of March 2025 because of the changes APP and Domtar announced regarding the concentration of sole beneficial ownership of the two corporate groups. FSC is commissioning a legal review of the corporate groups of Domtar and APP to better understand the implications and the effect of this change, and any impacts on the scope of the APP remedy process and the MoU. FSC disassociated from APP’s entire corporate group in 2007. 
KINGSPORT, Tennessee – The Domtar Packaging Mill in Kingsport has operated for decades, and residents have noticed one significant aspect of the mill that some believe has caused community strife: the smell. The Tennessee Department of Environment and Conservation (TDEC) is currently investigating three complaints about the odor from Domtar between March 31 and April 1. The TDEC said: “Although TDEC does not regulate odors, we do want to ensure that the facility is complying with its permit conditions.” …At the last Kingsport Economic Development Board meeting on April 1, Domtar updated the board on the wastewater treatment system plan. …The short-term plan involves reducing mill material losses and flow and optimizing the current wastewater treatment system. Domtar says this will last around a year. The long-term plan involves building a new anaerobic digester system. Domtar estimates that this project could take up to 18 months.