A wide shadow of uncertainty has been cast over Canada香蕉视频直播檚 forestry sector by U.S. President Donald Trump香蕉视频直播檚 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 aren香蕉视频直播檛 sure how they should invest or if they should put money into their companies at all.
香蕉视频直播淎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.香蕉视频直播
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 that香蕉视频直播檚 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 香蕉视频直播減unitive, unjustified protectionist measure,香蕉视频直播 adding in a statement that the 25 per cent charge on top of the current duties would 香蕉视频直播渄isrupt trade, raise costs for consumers, and threaten jobs and communities on both sides of the border.香蕉视频直播
香蕉视频直播淔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,香蕉视频直播 the council statement said.
香蕉视频直播淯njustified trade barriers weaken both economies and put workers, businesses, and consumers at risk.香蕉视频直播
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 香蕉视频直播 about 58 per cent of total forest product exports from the province.
Forest product exports to China 香蕉视频直播 including Hong Kong and Macau 香蕉视频直播 are ranked second at $2.3 billion or 22 per cent of total exports, followed by Japan at $806 million or 8 per cent.
香蕉视频直播淚t香蕉视频直播檚 not only the close proximity that makes Canada and the U.S. great partners in forest products trade, but it香蕉视频直播檚 also the unique quality of the wood and wood fibre-based products that come out of Canada香蕉视频直播檚 northern, colder, longer growing cycle forests,香蕉视频直播 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 香蕉视频直播渨ill have the opposite effect香蕉视频直播 of the Trump White House香蕉视频直播檚 expressed goal 香蕉视频直播渢o lower the cost of housing and increase housing supply.香蕉视频直播
香蕉视频直播淭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,香蕉视频直播 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.
香蕉视频直播淚t香蕉视频直播檚 going to make it more expensive for L.A. to rebuild, certainly at a time of increased demand,香蕉视频直播 Eby said. 香蕉视频直播淏ut right across the United States, it香蕉视频直播檚 going to hurt families on both sides of the border, and it doesn香蕉视频直播檛 make any sense.
香蕉视频直播淭his is a sector that is asking for 香蕉视频直播 and is going to receive 香蕉视频直播 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.香蕉视频直播
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.
香蕉视频直播淚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, 香蕉视频直播楴o, it香蕉视频直播檚 too expensive now,香蕉视频直播 and next thing we know we have mills closing?
香蕉视频直播淭hat香蕉视频直播檚 what香蕉视频直播檚 happening today, the phone has been ringing off the hook because of the uncertainty that we don香蕉视频直播檛 know what these effects will have on the markets,香蕉视频直播 he said.