President Donald Trump recently unveiled a series of new tariffs targeting wood and wood-product imports from Canada and other countries. The plan includes a 10 percent tariff on softwood lumber and timber, and 25 percent duties on kitchen cabinets, vanities, and wood furniture starting October 14. The administration has also warned that these rates could increase to 50 percent for certain categories if countries do not cooperate. These measures reflect a more aggressive phase of his trade strategy.
Canada likely to feel the blow its forest sector under strain
Canada has long been a major supplier of softwood lumber to the United States, and the new tariffs threaten to hit its forest and wood manufacturing industries hard. Many sawmills, logging operations, and furniture makers rely heavily on U.S. markets for revenue. However, with the introduction of tariffs, demand may consequently shrink, prices could subsequently fall, and businesses might ultimately face cutbacks or closures.
In anticipation of these mounting pressures, the Canadian government has already earmarked $870 million in aid to support its lumber sector. By doing so, it aims to cushion the industry against potential downturns and help mitigate the impact of reduced U.S. demand.. But critics argue that such measures may not be enough if demand from the U.S. plummets or if American buyers shift to alternative sources.
Trade war context as Trump’s expanding tariffs on Canada
This latest move comes on top of earlier tariff threats and escalations between the U.S. and Canada. In July, Trump threatened to impose a 35% tariff on Canadian imports, citing trade imbalances and other grievances. He has also raised tariffs on steel, aluminum, and other Canadian goods in recent months.
Canada has already responded with retaliatory tariffs and efforts to support affected industries. Provincial leaders and unions have called Trump’s actions a direct assault on Canadian jobs and sovereignty, and urged Ottawa to push back decisively.
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