British Columbia’s forestry sector is on edge as it anticipates the outcome of a U.S. Commerce Department inquiry into wood product imports, potentially leading to additional tariffs on the struggling industry. This investigation, initiated by U.S. President Donald Trump under Section 232, aims to determine if importing timber and related products could threaten national security.
The looming possibility of increased tariffs specifically on B.C.’s softwood lumber industry, already facing a hefty 35% duty imposed by the U.S., could exacerbate mill closures and job losses, according to industry experts. Forestry consultant Russ Taylor highlighted the uncertainty, suggesting varying tariff impacts on different wood products.
Under Section 232 of the Trade Expansion Act of 1962, high-ranking U.S. officials can request the Commerce Secretary to probe potential national security risks from imports. Past Section 232 investigations by Trump have resulted in tariffs on steel, aluminum, autos, and copper, negatively affecting Canada’s economy.
Despite being a major market for B.C. lumber exports, the U.S. has witnessed job losses as mills shut down, with some forestry companies shifting operations to the U.S. Taylor noted that while potential tariffs could lead to more B.C. mill closures, the U.S. industry lacks the capacity to fully replace Canadian imports.
Minister Ravi Parmar indicated that the Section 232 investigation findings are expected this fall at the latest. Concerns linger over the impact on the forestry sector, with doubts raised on the imposition of quotas. The uncertainty surrounding potential tariff implications remains a pressing issue for the industry and could impact U.S. homebuilders with higher costs.
Parmar expressed optimism about federal supports for the lumber industry amidst the ongoing trade dispute. However, he highlighted the challenges faced by those in the middle class, emphasizing the potential financial burden on individuals constructing or rebuilding homes amid the tariff uncertainty.