A wide shadow of uncertainty has been cast over Canada91裸聊视频檚 forestry sector by U.S. President Donald Trump91裸聊视频檚 threat to impose a 25-per-cent tariff on its lumber products, a measure now delayed by a month.
Several industry groups have released statements criticizing the tariff as unnecessary and harmful for both sides, a sentiment echoed by British Columbia Premier David Eby who vows full support for the provincial sector.
Prime Minister Justin Trudeau said Monday after speaking with Trump that the tariff threat has been paused for 30 days while Canada and the United States work together on plans to increase border safety and target organized crime.
Eby said after the delay was announced that the uncertainty is especially hard on the forest industry.
He said forestry companies aren91裸聊视频檛 sure how they should invest or if they should put money into their companies at all.
91裸聊视频淎nd so, our goal for industries like forestry, mining, energy and others, as well as manufacturing, will be to support them to find those overseas markets, to ensure that stability.91裸聊视频
Eby said earlier Monday that the tariffs, if implemented, would devastate a forestry sector already paying softwood lumber duties of 14.4 per cent when it ships to the United States, not to mention the presence of other challenges such as the pine beetle outbreak that wiped swaths of forests.
He said the additional tariff would also bring pain for U.S. consumers, since demand for homebuilding will be on the rise to replace thousands of buildings lost in the Southern California wildfires.
Forest Products Association of Canada president Derek Nighbor said in a statement that the United States can meet about 70 per cent of its homebuilding lumber needs, but that91裸聊视频檚 without taking into account the rebuilding around Los Angeles and in North Carolina after hurricane Helene last year.
The BC Lumber Trade Council called the tariff plan a 91裸聊视频減unitive, unjustified protectionist measure,91裸聊视频 adding in a statement that the 25 per cent charge on top of the current duties would 91裸聊视频渄isrupt trade, raise costs for consumers, and threaten jobs and communities on both sides of the border.91裸聊视频
91裸聊视频淔or Canadian producers, higher tariffs erode competitiveness and put mills under financial strain, leading to curtailments, job losses, and economic harm to forestry-dependent communities,91裸聊视频 the council statement said.
91裸聊视频淯njustified trade barriers weaken both economies and put workers, businesses, and consumers at risk.91裸聊视频
The latest figures for B.C. provincial trade data on forest product exports to the United States show a value of almost $6.2 billion for the first 11 months of 2024 91裸聊视频 about 58 per cent of total forest product exports from the province.
Forest product exports to China 91裸聊视频 including Hong Kong and Macau 91裸聊视频 are ranked second at $2.3 billion or 22 per cent of total exports, followed by Japan at $806 million or 8 per cent.
91裸聊视频淚t91裸聊视频檚 not only the close proximity that makes Canada and the U.S. great partners in forest products trade, but it91裸聊视频檚 also the unique quality of the wood and wood fibre-based products that come out of Canada91裸聊视频檚 northern, colder, longer growing cycle forests,91裸聊视频 Nighbor said in his statement.
The threat of the tariffs has also sparked opposition from within the United States, with National Association of Home Builders chairman Carl Harris saying in a statement that the trade barrier 91裸聊视频渨ill have the opposite effect91裸聊视频 of the Trump White House91裸聊视频檚 expressed goal 91裸聊视频渢o lower the cost of housing and increase housing supply.91裸聊视频
91裸聊视频淭ariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices,91裸聊视频 Harris said, adding the group is urging the Trump administration to reconsider.
Eby echoes those sentiments, noting Canadian lumber is a reliable and cost-effective way for U.S. homebuilders to supplement their construction needs even with the softwood lumber duties that had been in place before the tariff threats.
91裸聊视频淚t91裸聊视频檚 going to make it more expensive for L.A. to rebuild, certainly at a time of increased demand,91裸聊视频 Eby said. 91裸聊视频淏ut right across the United States, it91裸聊视频檚 going to hurt families on both sides of the border, and it doesn91裸聊视频檛 make any sense.
91裸聊视频淭his is a sector that is asking for 91裸聊视频 and is going to receive 91裸聊视频 our support in restructuring to be able to respond to this new reality, to access those new markets and to ensure sustainable forest jobs into the future.91裸聊视频
B.C. Conservative forests critic Ward Stamer said uncertainty is pervasive across the forestry industry in the province, since no one knows for sure how the U.S. construction market will react to the tariffs.
91裸聊视频淚s the market going to be able to respond positively and still want to continue to buy our products? Or is the market going to say, 91裸聊视频楴o, it91裸聊视频檚 too expensive now,91裸聊视频 and next thing we know we have mills closing?
91裸聊视频淭hat91裸聊视频檚 what91裸聊视频檚 happening today, the phone has been ringing off the hook because of the uncertainty that we don91裸聊视频檛 know what these effects will have on the markets,91裸聊视频 he said.