Prime Minister Mark Carney unveiled new federal measures to support Canada’s softwood lumber industry as it faces significant increases in U.S. duties. The $1.2 billion investment to support Canada’s forest sector and accelerate the use of Canadian wood in domestic construction is welcome news to the industry.
The measures – including $700 million in loan guarantees and $500 million to advance innovation, workforce development, and market diversification – send a strong signal of support for sustainable construction and domestic manufacturing.
While securing a long-term agreement to resolve the ongoing trade dispute must remain a top national priority, these supports provide critical relief during an exceptionally challenging time.
“This support comes at a critical moment for forestry workers, communities, and companies across the country,” said Kim Haakstad, president and CEO of the BC Council of Forest Industries. “Initiatives aimed at supporting workers, fostering innovation, enhancing liquidity, and promoting export development through organizations like Canada Wood are important steps toward stabilizing the sector and supporting government efforts to build more homes for Canadians. These investments also lay the foundation for long-term competitiveness.”
British Columbia is home to many world-leading forest products companies, and some of the hardest-hit communities, where the combined impact of trade barriers, rising costs, and reduced harvest levels has made this one of the most difficult periods for the industry in decades.
Canada’s forest sector is a major economic driver, supporting nearly 200,000 workers and contributing more than $20 billion to our GDP. In 2024, 66 per cent of Canada’s total softwood lumber production was exported, and of that, nearly 90 per cent was exported to the U.S.
“This announcement reinforces the critical role that wood-based solutions can play in meeting Canada’s housing and climate goals,” said Rick Jeffery, president and CEO of the Canadian Wood Council. “The focus on innovation, capacity expansion, and domestic use of wood aligns well with technical insights we’ve shared over many years through our work with government, industry, and the architects, engineers, construction professionals, and developers (AECD) community.”
