48 | Sector Focus: North America
SUMMARY
■Forestry in Canada generates C$87bn in revenue annually
■US tariffs on Canadian lumber are expected to be increased later this year to 34.45%
■Diversifying export markets will reduce dependency on the US market
GROWING STRONGER STARTS AT HOME
Protectionist US trade policy puts the onus on the Canadian forest products sector to bolster its domestic market and forge deeper relations with other trading partners, writes Derek Nighbor, president and CEO of the Forest Products Association of Canada (FPAC)
The current American global tariff threats are an urgent wake-up call here in Canada and around the world to improve competitiveness and infrastructure, and to diversify export markets.
Forestry has long been a cornerstone of the Canadian economy. Forestry’s economic, environmental and social benefits come from the more than 200,000 Canadians directly employed in the sector, living and working in hundreds of communities across the country, and generating C$87bn in revenue annually.
US tariffs on Canadian lumber are not an isolated incident but rather an escalation of existing trade tensions. The US currently charges an average of 14.4% in combined countervailing and anti-dumping duties on most Canadian softwood lumber manufacturers selling into the US, in addition to the threat of broad-based tariffs and the pending Section 232. That rate is almost double the rate levied before August 2024 and is expected to be increased again later this year to 34.45%. Canada, in contrast, has not
traditionally imposed tariffs or duties on US softwood lumber imports.
Canada’s bounty of natural resources and our commitment to develop them sustainably and with the engagement of local communities is a uniquely Canadian advantage.
President Trump’s tariffs and their impact on Canada are forcing us to re-examine the competitiveness of our economy. As we work through current challenges with the US administration, there is a strong Canadian consensus to take intentional action to build the most resilient, competitive Canadian economy possible and to forge new and deeper trading relationships with other partners.
With the recent election of a new government, we strongly urge the incoming administration to take action to strengthen Canadian competitiveness and unlock private sector investments through more competitive tax policies and improved regulatory approaches, while maintaining our commitment to sustainable resource development.
Above: The Canadian forestry sector generates annual revenue of C$87bn TTJ | May/June 2025 |
www.ttjonline.com
Canada’s federal government has created integrated sector strategies for critical minerals, green cement, and electricity sectors. Implemented in collaboration with provincial, territorial, Indigenous, and industry partners, these strategies respond to shifts in domestic and global markets, technologies, and geopolitical considerations. These natural resource sector strategies are critical to a more secure, more sustainable, and more competitive economy and a more
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