President Trump announced 50% tariffs on all kitchen cabinets and bathroom vanities, citing national security reasons . In other Business news: Canada seeks trade diversification with Indonesia; Roseburg Forest Products ceases hardwood plywood production; and Interfor announces share plan to reduce debt. Meanwhile: Vaughn Palmer opines on BC’s Timber Sale promises; BC lumber takes another hit; the Softwood Lumber Board’s incremental demand goals; and US GDP rebounds while mortgage rates trend down.
In Forestry/Climate news: 34 nations launch forest finance blueprint at New York Climate Week; Canada supports global reforestation efforts; researchers study the tradeoffs between storing and burning forest carbon; and BC’s Dragon Mountain Park is at risk without wildfire mitigation. Meanwhile: Tim O’Hara says the US H-2B Visa program is critical for US reforestation needs; staff shortages pull US Forest Service workers into fire roles; US funding cuts impact cross-border conservation efforts; and a judge pauses logging in Hoosier National Forest.
Finally, Alice Palmer on why anti-dumping duties make no sense in commodity markets.
Kelly McCloskey, Tree Frog News Editor
Canada aims to establish duty-free access for up to 95 per cent of its exports to Indonesia over the next eight to 12 months, International Trade Minister Maninder Sidhu said, after signing a trade agreement. The Comprehensive Economic Partnership Agreement is Canada’s first in the economically crucial Indo-Pacific region since 
The B.C. Government says it’s going to expand the scope of BC Timber Sales. The organization manages 20 per cent of the province’s allowable annual cut for Crown/public timber and the auction of public timber. The government released a review of BC Timber Sales on Tuesday… A Chemainus mill is among two Western Forest Products mills in the Cowichan Valley facing lengthy curtailments, impacting more than 200 workers. …At the Paulcan Jemico mills in Chemainus, there are 50 people working despite tough times for the industry. The owner says profit margins are razor-thin while regulations are always increasing. “We’re making it to the point where no one wants to do business because there is so much uncertainty in what goes on in this industry,” said Paul Beltgens, owner of Paulcan Jemico Industries. Beltgens says unless conditions improve, there’s very little reason to invest in his company’s operations for the future.
VICTORIA — Forests Minister Ravi Parmar this week announced major reforms to B.C. Timber Sales, hoping to reverse a two-thirds decline in sales volumes under the NDP. …Parmar said the government will broaden the agency’s mandate to focus on providing wood to support manufacturing, delivering jobs to communities and building partnerships with First Nations. The changes are prompted by a review conducted earlier this year by former B.C. Liberal cabinet minister George Abbott, Vanderhoof councillor Brian Frenkel and First Nations representative Lennard Joe. …Parmar didn’t understate the urgency of delivering logs to all the right places … that day’s Merritt Herald announced Aspen Planer mill was closing for “an indefinite period.” …The company doesn’t lack for wood supply on paper. …For all Parmar’s and Eby’s enthusiasm for boosting the annual harvest, they have not made believers of the Ministry of Finance in their own government.
US President Trump said Thursday that he will put import taxes of 100% on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks starting on Wednesday. Trump’s devotion to tariffs did not end with the trade frameworks that were launched in August, a reflection of the president’s confidence that taxes will help to reduce his government’s budget deficit while increasing domestic manufacturing. But the additional tariffs risk intensifying inflation that is already elevated, as well as slowing economic growth. …Trump said that foreign manufacturers of furniture and cabinetry were flooding the US with their products and that tariffs must be applied “for National Security and other reasons.” The new tariffs on cabinetry could further increase the costs for homebuilders when many people seeking to buy a house feel priced out by the mix of housing shortages and high mortgage rates.
Lumber futures traded above $580 per thousand board feet in September, holding above earlier month lows as supply tightened and housing demand showed signs of renewal. Major producers such as Interfor reduced output through maintenance and shift cuts and mill idling while Canadian softwood flows remained constrained by tariff uncertainty which compressed prompt availability. Expectations of Fed further rate cuts later in 2025 encouraged forward looking builders to replenish inventories. New single family sales rose 20.5% to an 800k seasonally adjusted annualized rate in August which was the largest monthly rise since August 2022. Existing home sales held at a 4.00m SAAR in August and housing inventory stood at 1.53m units equivalent to 4.6 months of supply.
Weakening U.S. housing construction has put another dark cloud over BC’s forest industry, increasing the likelihood of more mill shutdowns and layoffs. Lumber prices flatlined in recent weeks due to weak demand, just as new, higher duties in the Canada-U.S. softwood lumber dispute took effect. That means BC mills are operating at losses of up to US$220 per thousand board feet of two-by-fours, according to industry consultant Russ Taylor. …Taylor said market conditions during September are typically favourable for sawmills, but they’re decidedly negative this year. His forecast is that they will remain weak for the rest of the year, which will likely result in mills taking downtime. “We’re seeing it already,” said Kim Haakstad, CEO of the B.C. Council of Forest Industries. “We’re seeing temporary curtailments, we’re seeing extended holiday breaks, we’re seeing reconfigured shift schedules. …Haakstad said Parmar’s recognition of the urgency for change was encouraging.
BURNABY, BC — Interfor announced that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and Scotiabank, under which the Underwriters have agreed to purchase, on a bought deal basis, 12,437,800 common shares of the Company at a price of $10.05 per Common Share for gross proceeds of $125 million. The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Common Shares. …The Company intends to use the net proceeds of the Offering to pay down existing indebtedness and for general corporate purposes. …Proceeds of the Offering are expected to further enhance Interfor’s flexibility to navigate near-term market volatility. The Offering is scheduled to close on or about October 1, 2025.
Average mortgage rates in September trended lower as the bond market priced in expectations of rate cuts by the Federal Reserve. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.35%, 24 basis points (bps) lower than August. Meanwhile, the 15-year rate declined 21 bps to 5.50%. Despite the recent drop, rates remain higher than a year ago as last September saw the lowest levels in about two years. The 30-year rate is currently higher by 17 basis points (bps), and the 15-year rate is higher by 24 bps, year-over-year. …Markets began pricing in rate cuts from the Fed at the start of the month, particularly after news that jobless claims rose while inflation remained modest. On September 17, the Federal Reserve announced a 25 bps cut to the federal funds rate, bringing the target range to 4.00% – 4.25%. Falling mortgage rates have already shown an impact on housing activity. 
GATINEAU
OTTAWA, ON – Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced over $1.44 million in funding for 10 projects under Natural Resources Canada’s Global Forest Leadership Program, delivered through the International Model Forest Network. This funding will help restore damaged ecosystems, support agroforestry and sustainable local businesses, empower Indigenous and local communities — especially women and youth — and improve global forest management and restoration. Healthy forests around the world contribute to carbon sequestration and climate resilience, benefitting Canadians and the global community. As a leader in sustainable forest management, Canada plays a key role in advancing sustainable forestry worldwide, and the federal government remains committed to sharing its expertise, fostering collaboration and helping restore, manage and conserve forests around the world to protect biodiversity and help tackle climate change and environmental damage.
In many places, moose, bear, wolves and other wildlife can simply walk between the two nations. There are barriers — roads, development and a lack of protected habitat on either side — but for more than a century, relatively relaxed border policy and a shared sense of purpose saw conservationists in both countries working together to overcome them. Now, US President Trump has ratcheted up the challenges to cross-border conservation. …Many of Trump’s actions have explicit implications for cross-border conservation — in North America and globally. …Canadian conservation organizations have reported losing co-funding as a result of Trump’s cuts to foreign aid. As his administration has stretched staffing thin and proposed deep budget cuts at the US National Park Service, it ended funding many found crucial to habitat conservation work across the border. Trump has also withdrawn from the Green Climate Fund and the Paris Agreement.
In a career that has spanned nearly 40 years in the forestry industry, Michael McKay says he’s never had to face a situation like the one he’s staring at now. “This is probably one of the biggest, I mean with this fire and the current state of the industry, to have it all come together at once, it’s definitely about as tough as it’s been,” McKay said. The president of Franklin Forest Products is facing a perfect storm of problems but is pivoting as best he can to weather through it. The latest issue was the Mount Underwood Fire which started Aug. 11 and ended up destroying half of the company’s powerline despite his employees trying to save it. …The blaze interrupted the implementation of a new Gang Mill plant that would have added more staff to the company’s roster of 35 employees. …”It’s been four years and wood’s not coming out, there’s just no wood coming out of the bush and all we are is a bunch of too many squirrels chasing too few nuts,” McKay said.
IDAHO — After a slew of firings and deferred resignations last winter, the loss of federal workers left holes throughout the Northwest. “When we get to peak fire season, it’s kind of an all-hands-on-deck call, if you will,” said Jim Wimer, a fire prevention officer for the Nez Perce-Clearwater National Forests. US Forest Service employees who are normally in the office — like wildlife biologists or hydrologists — jumped in to help with fire information this summer, he said. …Workers even drove trucks with supplies to wildfires, often working overtime to help, he said. Not only does it help local fire efforts, but it also gets people out to other parts of the country to gain unique experiences and helps other forests that are in similar situations, Wimer said. …This year, there have been 364 fires on land the agency manages, but not a lot of acreage burned, he said.
INDIANA — The controversial and slow-moving forest management plan inside the Hoosier National Forest hit another roadblock last week. All related activities — including timber sales, prescribed burns, road construction — have been temporarily halted by a court order. The Houston South Project would have opened up about 13,500 acres of the Hoosier National Forest to prescribed burning, 4,000 acres to logging, 2,000 acres to herbicide application and 400 acres to clearcutting. Opponents of the Houston South Project say this ruling is a meaningful step in the right direction. …Groups like the Indiana Forest Alliance have argued that cutting, spraying and burning on the steep slopes could lead to pollution in the reservoir jeopardizing drinking water quality and public health for the 130,000 people in the Bloomington area. …Chief Judge Tanya Pratt halted the project after finding that the USFS violated the National Environmental Policy Act in failing to consider the potential environmental impacts of the plan.
At New York Climate Week, a coalition of 34 national governments unveiled a decisive blueprint called the Forest Finance Roadmap for Action, aimed at closing the substantial funding shortfall undermining global efforts to halt deforestation. The plan, developed in partnership with Brazil and backed by the United Nations Environment Programme (UNEP), targets the estimated $66.8 billion annual finance gap in tropical nations. The roadmap distinguishes itself as the first unified framework to bring together governments from both the Global North and South under a shared agenda for forest finance, according to an announcement made by the Forest & Climate Leaders’ Partnership (FCLP). It seeks to move beyond pledge-making toward deployable, investment-ready strategies aligned with the COP30 Action Agenda and the Glasgow Leaders’ Declaration.
Storing carbon in forests is an essential, nature-based buffer against climate change. Yet forests packed with too many trees increase the threat of severe wildfires… A team of UC Merced and collaborating researchers evaluated the tradeoffs between two seemingly opposing scenarios: Trees are critical because they pull carbon dioxide from the air, preventing carbon from adding to greenhouse effects that trap heat and warm the atmosphere; and the increasing severity and danger of wildfires call for the thinning of overly dense forests. The researchers found that the best approach is a combination of both. 
The biggest trees in the Amazon are growing larger and more numerous, according to a new study that shows how an intact rainforest can help draw carbon dioxide out of the atmosphere and sequester it in bark, trunk, branch and root. Scientists said 
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