A US-Canada trade deal may be ready by month end—without lumber and autos. In related news: Northern Ontario forestry remains in peril despite Kap Paper bailout; Trump’s tariffs put Canadian cabinet-makers and US cabinet-importers in jeopardy; and lawmakers in Georgia and Arkansas are seeking tariff relief. Meanwhile: the National Lumber and Building Material Dealers Association honoured Scott Yates with a distinguished service award; and Ontario’s Building Show 2025 explores the future of wood-based construction.
In Forestry news: the European Union plans to shorten by half its deforestation regulation delay; NGOs seek repeal of Protect Ontario By Unleashing Our Economy Act; forest development projects continue despite US government shutdown; and a BC MLA is outraged by cutting permit delays; while ENGOs seek biodiversity legislation.
Finally, winter is coming—does your safety program cover winter driving?
Kelly McCloskey, Tree Frog News Editor
A U.S.-Canada trade deal on steel, aluminium and energy could be ready for Prime Minister Mark Carney and US President Donald Trump to sign at the Asia-Pacific Economic Cooperation summit later this month in South Korea, the 
Friday was a good news, bad news day for Northern Ontario’s forest products sector. Folks in Kapukasing are breathing easier…the federal and provincial governments announced they’re contributing a total investment of $28.8 million to sustain the Kapuskasing paper mill for the short term. Broken down, the province is spending $16.8 million, while the feds are chipping in $12 million. …However, forestry’s shaky conditions have put another community in peril [with] Interfor indefinitely shutting down its Ear Falls sawmill. …Unifor is calling for immediate action involving all levels of government to develop an industrial strategy for the forestry sector… The Northwestern Ontario Municipal Association and the Federation of Northern Ontario Municipalities issued a joint statement that “urgent and coordinated action is required to ensure long-term stability across Northern Ontario’s forestry and resource sectors.” The best outcome, the group said, is for government to strike a long-term trade deal with the U.S. to ensure economic and employment stability.
THUNDER BAY – Ontario’s MPPs are officially back at Queen’s Park for a new sitting of the provincial legislature, after breaking for the summer and forestry was top of mind for the region’s leaders. Opposition member Sol Mamakwa, MPP for Kiiwetinoong, questioned the Ford government on how they plan to help 160 unionized workers affected by the shutdown at the sawmill in Ear Falls. “Our government is disappointed of the news coming from Ear Falls. Immediately following the announcement of the mill, the premier and I reached out to company officials and Mayor (Kevin) Kahoot offering support for the workers and the community,” Associate Minister of Forestry and Forest Products Kevin Holland said. …The tariff hike contributed to ongoing market challenges in the sector forcing Interforb to suspend operations at the sawmill indefinitely.
Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 0.8% month over month in September and gained 5.5% year over year. Meanwhile, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 1.7% month over month and rose 8.4% year over year. …Prices for lumber and other wood products declined 4.4% in September, after two straight monthly increases. The decrease was caused by falling softwood lumber prices (-10.7%), the largest decrease since June 2022. In August 2025, the United States announced a significant increase to the duties it levies on Canadian softwood lumber.
The Canadian government has opened applications for a $700 million loan guarantee program that helps lumber companies weather mounting US tariffs that have pushed some firms into bankruptcy. The Business Development Bank of Canada 
Lumber futures fell below $610 per thousand board feet, their lowest level since October 8 and down 12% from a three-year high in early August, as a slowing US housing market outweighed potential supply curbs from tariffs. August building permits dropped to a seasonally adjusted annualized rate of 1.33 million, the lowest since May 2020, while housing starts fell 8.5%, marking the fourth-lowest reading in over five years. Earlier this month, the US imposed a 10% tariff on Canadian lumber, with the Trump administration stating it aims to expand domestic timber harvesting and reduce reliance on foreign lumber. Looking ahead, expected Federal Reserve rate cuts could stimulate construction and home buying and encourage homeowners to borrow for repairs and renovations, the largest driver of lumber demand. However, signs of a slowing labor market and rising inflation suggest demand may remain subdued.
Alain Ouzilleau, owner of Groupe Cabico, spent millions upgrading his two factories in Quebec and Ontario into state-of-the-art facilities shipping around $100-million worth of high-end kitchen cabinets to the US each year. Almost overnight, that business has been thrown into jeopardy. …“We have very long-term loyal customers,” Mr. Ouzilleau said. “But the 50% that is planned to be effective January 1st is just a death sentence.” …Hundreds of other Canadian cabinet and furniture makers also stand to lose their key export business, with limited ability to expand in a crowded domestic market. …What started as tariffs on steel, aluminum and automobiles has expanded to include copper and lumber, with a tariff on heavy trucks slated to come into force in November. The Trump administration is also conducting investigations into aircraft, semiconductors and industrial machinery, among other industries, suggesting more tariffs are on the horizon. [to access the full story a Globe & Mail subscription is required]
Section 232 tariffs were once seen as a fortress for US metals. Yet, that fortress now casts a much longer shadow. Companies far removed from the steel and aluminum sector could soon find themselves ensnared in tariffs they never imagined, thanks to the inclusion process for “derivative” products. The Trump Administration has steadily expanded Section 232 authority well beyond their original steel and aluminum targets, to copper, automobiles, trucks, lumber, and even wooden cabinets. These tariffs, which range from 10% (for lumber) to 50% (for steel and aluminum), are layered on top of normal import duties. At first glance, these measures appeared to strike only those industries handling raw materials. But in 2025 the Administration sought to close what it saw as a loophole: downstream products containing tariffed metals that could enter duty-free. As a result, section 232 tariffs were imposed on the raw material and a finite list of derivative products.
Anthony Cabrera, who started working with a contractor in March to construct the three-bedroom house, was eager to get ahead of a fresh round of tariffs on key building materials and home items that took effect earlier this week. Mr Cabrera had already seen his initial budget of roughly $300,000 balloon to $450,000 as prices for a range of products. …A recent report from Goldman Sachs found that US consumers will shoulder as much as 55% of the cost. It takes time to raise prices on consumers, the economists noted, and US firms will increasingly pass on costs in the coming months. The new tariffs “will create additional headwinds for an already challenged housing market” Buddy Hughes, chairman for the NAHB, said. Affordable housing construction could be hit particularly hard, said Elena Patel, of the Urban-Brookings Tax Policy Center. …Matthew Walsh, at Moody’s Analytics, said that cost uncertainty will be the most immediate effect.
More companies that provide rayon, lyocell and modal to fashion brands are sourcing less from ancient and endangered forests, according to the nonprofit Canopy. Although the vast majority of cellulosic fibers are still spun from virgin materials, some of the biggest producers have been quickly adopting forest-friendly and circular materials. 70% of companies making semi-synthetic, cellulose-based fibers now exhibit green practices that reduce pressures on forests. 54% of fiber producers that the group tracked have reached the nonprofit’s favorable green rating. …Canopy uses this annual report in part to help brands make informed sourcing decisions. The use of recycled materials for such fibers is still rare, although it grew to 1.1% in 2024. Such textiles represent only 6% of the global fiber market, according to Textile Exchange. It found that fibers approved by Forest Stewardship Council (FSC) or other certification made up as much as 70 percent of cellulosic fiber market share.
The Forest Practices Board, an independent watchdog, is set to conduct an audit on a forestry operation near Port McNeill. The Aat’uu Forestry Limited Partnership’s Forest Licence A19236 in the Campbell River Natural Resource District of the North Island Timber Supply Area is the subject of the audit, starting on Oct. 20. “The audit will examine whether forestry activities carried out between Oct. 1, 2023, and Oct. 24, 2025, comply with the Forest and Range Practices Act and the Wildfire Act,” reads a press release from the Forest Practices Board. “Activities subject to audit include timber harvesting; road and bridge construction, maintenance, and deactivation; silviculture; wildfire protection; and related operational planning.” The Aat’uu Forestery Limited Partnership is a company owned by the Ehattesaht First Nation. It is managed by Strategic Natural Resource Group from an office in Campbell River.
The Northwest Territories could see more difficult wildfire seasons ahead – all the way into the next century, according to recent research. One 
The European Union proposed granting companies six months of leeway to comply with its landmark law to curb deforestation across the world, rejecting a longer delay despite industry complaints. The EU’s Deforestation Regulation aims to tackle the felling of trees associated with imports. Yet it has faced criticism at home and abroad for being too bureaucratic. The European Commission proposed Tuesday giving large companies six months of relief from sanctions after the law goes into effect at the end of the year. Bloomberg previously reported plans to delay implementing the rules by a year. …Both parliament and member states will need to sign off on the changes before the end of the year, and have the right to propose amendments. …A six-month adjustment period will be welcomed by environmental activists, alarmed by high rates of deforestation, said Luciana Chávez. [to access the full story a Bloomberg subscription is required]
Does your workplace safety program include steps to reduce the risks your drivers face when driving on the job in winter? It needs to. Your safety responsibilities don’t change with the seasons. But you do need to address the additional driving hazards created by winter road and weather conditions. Some of the biggest hazards for log haulers include: