U.S. Softwood Lumber Tariff Hike Threatens Canadian Forestry, Communities

The U.S. Department of Commerce's decision to increase anti-dumping duties on Canadian softwood lumber to 20.56% has alarmed forestry-dependent communities across Northwestern Ontario and British Columbia, threatening the economic viability of the sector and thousands of jobs. Regional groups like the Northwestern Ontario Municipal Association (NOMA) and the Thunder Bay Chamber of Commerce condemn the hike as protectionist and unjustified, warning it could lead to mill closures, layoffs, and harm Indigenous workers and local economies. The cumulative tariffs since 2016 exceed 35%, resulting in an estimated $10 billion CAD economic toll that hampers investment, innovation, and wages. A Resource Works report highlights systemic risks to rural infrastructure, emergency services, and Indigenous partnerships in British Columbia, with similar vulnerabilities noted in Ontario's forest-dependent towns. Industry leaders and municipal officials are urging the Canadian federal and provincial governments to prioritize resolving the dispute through diplomatic engagement, legal challenges under CUSMA/NAFTA and WTO, and mitigation measures to support affected communities. Meanwhile, industry groups in New Brunswick and British Columbia express deep concern over the tariff hikes, fearing closures and financial strains on small producers, while U.S. groups maintain their stance on enforcing trade laws against perceived unfair Canadian practices.