It’s official. The United States has officially raised duties on Canadian softwood lumber to a combined rate of 35.19%, a move announced on Friday by the U.S. Department of Commerce. And while the increase had been widely anticipated, it has nonetheless provoked swift condemnation from Canadian officials and industry leaders, particularly in British Columbia and Ontario—regions where cross-border lumber trade is most concentrated. Critics argue the move underscores a pattern of inequitable treatment from Canada’s most significant international partner.
B.C. Forests Minister Ravi Parmar has responded with pointed criticism, calling the hike in tariffs “absurd and reckless.” In a statement posted to social media on Friday, Parmar warned, “Adding these additional softwood duties … will only worsen an affordability crisis on both sides of the border.” Speaking with CBC News, he described the tariffs as “an attack on hard-working forestry workers in Canada,” before also emphasising the impact on American consumers: “It is nothing more than poking themselves in the eye; this is going to cost them big, as they rely heavily on our lumber,” he said.
Industry organisations echoed Parmar’s concerns. The B.C. Council of Forest Industries described the new duties as “crippling” for Canadian workers, while the B.C. Lumber Trade Council cautioned that U.S. construction firms dependent on Canadian softwood will face rising costs: “This decision will harm communities on both sides of the border,” said Kurt Niquidet, president of the trade council. “What is needed now is a stable, negotiated agreement that supports jobs, trade, and housing affordability.” Whilst the Ontario Forest Industries Association also weighed in, citing a report from the Canadian Chamber of Commerce that found tariffs have already added $6,000 U.S. to the cost of building a single-family home in the United States.
The softwood lumber dispute is a longstanding source of friction between the two countries, predating the current U.S. administration. In Canada, provinces set stumpage fees for timber harvested from Crown land—a system American producers, who pay market rates, argue amounts to an unfair subsidy. The U.S. Department of Commerce has repeatedly upheld that view, imposing duties based on the belief that Canadian lumber is being sold below fair market value.
In response to the escalating trade tensions, Prime Minister Mark Carney earlier this week announced a $1.2 billion support package aimed at helping the forestry sector diversify export markets and retrain affected workers. Parmar said he expects nearly half of that funding to be allocated to British Columbia. “We’re the largest forestry company when it comes to forestry in Canada by a long shot, and so I have every expectation that the federal government recognises that,” he said.
Appearing on CBC’s Power and Politics, Parmar reiterated Canada’s track record of successfully challenging U.S. tariffs under trade agreements such as CUSMA and NAFTA, as well as in American courts. “We’ve won every single time,” he said. “The challenge we have this time around is this is a president who doesn’t believe in the rule of law.” Canada’s forestry sector has endured mounting pressure from U.S. duties for more than a decade, with British Columbia particularly affected by mill closures and job losses. While federal support offers some relief, Parmar emphasised the need for long-term strategies to reduce dependence on the U.S. market and strengthen the industry’s resilience.
As it stands, 40% of all Canadian lumber exported across the border originates from British Columbia, with approximately 70% of all lumber imports used in housing. Last year, Wood Central reported that a 3.4% price difference is the sweet spot for substitutability between Spruce-Pine-Fir (SPF) and Southern Yellow Pine (SYP).
- To learn more about the impact of duties on lumber prices, click here for Wood Central’s special feature from March 2025.
