Canada’s softwood lumber exports to the United States fell sharply in September, dropping 22 per cent, according to new trade data published by Lesprom Network. The decline reflects weakening U.S. housing demand, elevated interest rates and persistent trade tensions between the two countries.
Wood Central understands the downturn coincided with an 8 per cent fall in the price of Canadian softwood shipped to the U.S., adding pressure on producers already contending with mill curtailments and wildfire‑related fibre shortages. The price slide has intensified concerns in British Columbia, where supply constraints continue to reshape the sector. And whilst the United States remains Canada’s largest lumber export market, higher borrowing costs and increased tariffs have exposed producers to sudden shifts in U.S. economic conditions.
The slump comes as Prime Minister Carney pushes to increase the use of wood in domestic housing, part of a broader effort to stabilise demand and accelerate low‑carbon construction. Last week, Wood Central revealed that Carney and Ottawa Mayor Mark Sutcliffe announced a new partnership positioning the capital as a testing ground for Build Canada Homes, the $13‑billion federal agency created to develop public lands and drive mass‑timber construction.
Meanwhile, Canada is moving to diversify its export markets following a recent trade mission to South Korea and Japan. Last month, British Columbia’s Forests Minister Bruce Ralston said the province was “actively building new partnerships in Asia to reduce our reliance on the U.S. market,” adding that the region “represents enormous long‑term potential for Canadian wood products.”
During the tour, Canadian officials met with major Japanese homebuilders and South Korean mass‑timber developers seeking reliable, low‑carbon building materials. Ralston noted that Asian buyers were particularly drawn to Canada’s sustainability credentials, saying that “our certified forests and stable supply chain give us a competitive advantage in markets that value environmental performance.”
Several new commercial agreements emerged from the mission, including expanded supply commitments with Japanese importers and exploratory partnerships with Korean construction firms. Industry leaders say the deals reflect a growing appetite in Asia for Canadian SPF and coastal species as both countries scale up mass‑timber construction.
