Financial aid is on the horizon for Canada’s softwood lumber industry, according to remarks made by the federal industry minister to a business group in Fredericton. Mélanie Joly disclosed that the assistance will involve financial backing from the Business Development Bank of Canada via banks. Despite Prime Minister Mark Carney’s commitment of $1.25 billion to the sector in August, the funds have yet to be dispersed. While the specific amount earmarked for the New Brunswick industry remains undisclosed, Joly assured the Chamber of Commerce in Fredericton that allocations will be based on necessity and will come in various forms.
Joly emphasized the multifaceted nature of the support, stating, “There is support for operations, providing liquidity assistance to companies grappling with unjustifiable tariffs, which often lead to mounting debts. Furthermore, there will be funding for capital expenditures to facilitate ongoing investments in their businesses.”
The financial aid announcement follows the imposition of new tariffs by U.S. President Donald Trump on September 30. Trump’s declaration included an additional 10 percent tariff on softwood lumber, supplementing the existing 35 percent duty, and a 25 percent levy on select finished wood products like cabinets and upholstered furniture. These tariffs took effect on Tuesday, with plans for further escalations on January 1 to reach 30 percent for upholstered furniture and 50 percent for cabinets and vanities.
In addition to the financial assistance, Joly revealed that the federal government is actively developing a buy Canadian initiative to promote the use of New Brunswick’s softwood in domestic construction projects and major undertakings.