U.S. Tariffs Aren’t B.C. Forestry’s Biggest Problem

By Jock Finlayson, ICBA Chief Economist and Ken Peacock, consulting economist
Independent Contractors and Businesses Association
March 10, 2026
Category: Business & Politics
Region: Canada, Canada West

Whenever questions arise about mill closures and job losses in B.C.’s forest products sector, NDP government representatives are quick to blame U.S. tariffs. But the numbers tell a different story. Softwood lumber exports to the U.S.— and other markets—have been falling more or less continuously since peaking in 2016. By 2024, before Donald Trump returned to office, B.C.’s southbound softwood lumber exports had already tumbled 42% compared to 2016. The Trump-driven expansion of softwood tariffs in 2025 contributed to a further 14% Y/Y reduction over the course of last year. …the downturn in lumber exports is also unique to B.C. Across Canada, softwood exports to the U.S. edged up 1.4% through 2024 before slipping under the weight of higher American tariffs and stalled U.S. homebuilding. …Pretending that mill closures, escalating job losses in the forest sector, and capital flight from the B.C. industry are due to U.S. tariffs that were hiked in 2025 obscures the real challenges confronting the B.C. industry. 

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