More than 20 lumber mills in British Columbia have shut down in the past three years, impacting billions in wood products due to U.S. tariffs. Canada has witnessed the loss of tens of thousands of jobs as a result.
The forestry industry in British Columbia is facing a dire situation, with multiple factors contributing to its decline, including recent U.S. tariffs that have exacerbated the challenges.
The history of U.S.-Canada softwood lumber trade disputes dates back over four decades, with various U.S. administrations imposing tariffs on Canadian lumber. The ongoing issue stems from differences in how Canadian and American producers access wood, with Canada’s publicly-owned forest lands charging stumpage fees, while the U.S. relies on market-driven access prices for privately-owned forests.
The U.S. claims that the low stumpage fees in Canada amount to unfair subsidies for the lumber industry, leading to below-market prices in the U.S. In response, the U.S. Lumber Coalition argues that the Canadian government has provided substantial support to the industry, creating an oversupply that harms American producers.
The trade dispute has seen a series of tariffs and negotiations since 1982, with the U.S. imposing duties on Canadian softwood lumber and Canada adjusting export policies to mitigate these tariffs. Recent U.S. actions have included anti-dumping and countervailing duties, adding significant costs to Canadian softwood lumber imports.
In 2025, the Trump administration further escalated the trade conflict by imposing a 10% tariff on softwood lumber following a national security investigation. Subsequent rounds of tariffs under Section 338 have raised the total tariff level on Canadian softwood lumber to 45%, impacting other wood products as well.
The reaction within the U.S. is divided, with the lumber industry supporting the tariffs while sectors like homebuilders oppose them due to increased construction costs. The Forest Products Association of Canada highlights the shift to European imports benefiting from lower U.S. tariff rates, emphasizing the challenges faced by American producers in meeting domestic demand.
Overall, the ongoing trade war between the U.S. and Canada in the softwood lumber sector continues to have far-reaching implications for both countries and the industry as a whole.