The BC Council of Forest Industries Conference kicked off amidst high anxiety over softwood lumber—despite the tone change from the US. Conference highlights include: Chief Terry Teegee set the conference tone; Kurt Niquidet provided an economic outlook; Russ Taylor led on global markets; and others opined on trade and innovation. In related tariff news: China retaliated with 34% tariffs on US imports, sending stock markets down and recession fears up; while US homebuilders celebrate lumber’s exemption (for now), as lumber prices still fell.
In other news: BC announces new Forestry Support Bureau for jobs; Steelworkers to gather for their national policy conference; Mercer power’s Walmart’s new mass timber campus; lawmakers panned suggestion to kill Oklahoma’s Forestry Service; and timber organizations seek revamp of Northwest Forest Plan.
Finally, the Global Buyers Mission 2025 date is set; and sadly—BC coast logging legend Mark Ponting dies at 66.
Kelly McCloskey, Tree Frog News Editor
MONTREAL — The notion that Canadian companies can simply switch supply chains in response to American tariffs is a fantasy, experts say. Businesses north of the border are looking elsewhere to source their material and sell their products. But companies caught up in tightly braided supply channels after decades of trade pacts and sector specialization may quickly bump into barriers around everything from transport and labour costs to resource availability, manufacturing capacity and market saturation. …Cancelling contracts with Canadian suppliers would trigger breakage fees of up to $500 million per U.S. factory, the group said. Many parts cross the border multiple times before final assembly. …Auto, lumber and steel producers would face some of the toughest challenges in the hunt for new markets, Paschen said. …Forestry players face an entirely different dilemma. Lumber exports, while ample, have a low value per volume compared to some other commodities.
Canadian lumber has been left out of Trump’s tariff blitz, despite the president’s repeated threats to add to import taxes to a big chunk of US wood supply. Prices for two-by-fours are tumbling. Lumber futures contracts shed 8.7% to end at $606 per thousand board feet, the lowest price since mid February. They are on track for their worst day since the pandemic-era lumber bubble burst three years ago. Prices had risen this year in anticipation of another layer of import taxes. …That climb is unwinding. But the decline can also be chalked up to expectations that tariffs will push up residential construction prices and strain affordability. The tariffs Trump announced Wednesday will add about $6,400 to the cost of building an average house, UBS analyst John Lovallo estimates. That assumes that about 7% of the materials are imported and subject to an average tariff of 22%. [to access the full story a WSJ subscription is required]
In April 2023, close to 600 USW activists, staff and retirees from across the country gathered in Toronto for the 55th USW National Policy Conference, this central body that guides our union’s direction in Canada. 
The stock market took another pounding Friday after China retaliated with new tariffs on U.S. goods, raising fears a trade war will tip the globe into a recession. The Dow Jones Industrial Average traded 1,130 points, or 2.8%. This follows a 1,679.39 point decline on Thursday. The S&P 500 slid 3.2% after the benchmark shed 4.84% on Thursday. The Nasdaq Composite shed 3.5% as many tech companies have exposure to China. …“The Trump administration may be playing a game of chicken with trading partners, but market participants aren’t willing to wait around for the results,” said Michael Arone, at State Street Global Advisors. “Investors are selling first and asking questions later.” Bank stocks tumbled in the premarket as worries of a U.S. economic slowdown grew. …The 10-year Treasury yield fell back below 4% Friday as investors flooded into bonds for safety. JPMorgan late Thursday raised the odds of a recession this year to 60% from 40%.
The Oregon Building Codes Division (BCD) has published its first permit-ready plan under the state’s updated Permit-Ready Plans Program. The building plans, available free to the public, are for a code-compliant residential deck. The Permit-Ready Plans Program creates an efficient pathway for the state to develop and make publicly accessible building plans that meet the requirements of the state building code. Plans are published to the BCD website. …The first plan published is a single-level, wood-framed, exterior deck attached to a building regulated by the Oregon Residential Specialty Code. BCD anticipates publishing more permit-ready plans for other residential accessory structures such as pole buildings, detached garages, patio covers, and carports later this year. The division will start developing plans for smaller detached dwelling units by the end of 2025.
The BC Supreme Court has dismissed a lawsuit from Teal Cedar Products, a forestry company, which claimed it lost millions of dollars due to new timber rules in Haida Gwaii. The company argued that the new regulations unfairly devalued their forest tenures. The rule changes included reducing the amount of timber that could be harvested and implementing conservation measures. Teal, which owned forest licenses affected by the regulations, claimed these changes amounted to “constructive expropriation,” meaning the government’s actions took away the value of their property rights, without formally seizing the property. Chris Tollefson, a University of Victoria law professor and public interest lawyer who represented the Haida Gwaii Management Council, said private operators need to know rules evolve based on changing values and science, and companies aren’t owed compensation “where the change is bona fide, is not being used to discriminate or target them.” 
