FPAC calls for immediate action as new U.S. tariffs hit Canada’s forest sector

Talking Points

The Forest Products Association of Canada (FPAC) expressed deep disappointment over new 50% U.S. tariffs affecting a wide range of Canadian forest products, following the collapse of trade negotiations. FPAC president and CEO Derek Nighbor emphasized the need for swift action to protect employees and businesses in the forest sector, which is significantly impacted by these tariffs.

• The tariffs disrupt North American supply chains and increase costs for housing and construction.
• FPAC calls for immediate measures to support viable facilities and countermeasures against unfair imports.
• Recommendations from the Forest Sector Transformation Task Force must be implemented to enhance competitiveness and market diversification.

This situation highlights the importance of a stable trading relationship between Canada and the U.S., crucial for the future of Canada’s forest products industry.

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The Forest Products Association of Canada (FPAC) is deeply disappointed new 50% U.S. tariffs now affect a broad range of Canadian forest products, following the collapse of the Canada-U.S trade negotiations.

“We appreciate the sustained efforts of Prime Minister Carney, Minister LeBlanc, lead negotiator Janice Charette and Canada’s negotiating team,” says FPAC president and CEO Derek Nighbor. “Canada was right not to accept terms that failed to provide a fair and reliable path forward. Unfortunately, with the introduction of new Section 338 tariffs, in addition to existing softwood lumber duties and Section 232 tariffs, Canada’s forest sector is among the hardest-hit. We must move swiftly to protect employees, businesses and communities.”

Canadian forest products are essential to integrated North American housing, construction, manufacturing and consumer-product supply chains. These tariffs will disrupt those supply chains and raise costs on both sides of the border.

Including value-added products such as plywood, laminated wood products, fibreboard, paper and packaging is particularly damaging. These are precisely the products and investments Canada has been working to grow as we modernize the sector, build more housing and move further up the value chain.

FPAC is calling for immediate action in four areas:

• Timely, practical and accessible measures to help viable facilities maintain operations, retain employees and manage trade disruption that reflect the operating realities of Canada’s forest sector.
• Carefully designed countermeasures, remission processes and import monitoring that protect Canadian producers and supply chains from unintended harm and unfairly priced imports diverted into Canada.
• Immediate implementation of the Forest Sector Transformation Task Force recommendations, including action on economic fibre access, regulatory efficiency, wildfire resilience, transportation competitiveness and investment in anchor facilities and value-added manufacturing.
• Stronger domestic demand and market diversification through federal housing, infrastructure and procurement programs that make greater use of Canadian wood and forest products.

The federal government and the sector have already done considerable work through the Forest Sector Transformation Task Force and the resulting action plan. This is the time to move from planning to execution, with clear timelines, accountable leads and co-ordinated federal and provincial action.

“We will continue working with governments, our members, labour partners and American business partners to protect employees and productive capacity, strengthen domestic competitiveness and diversify markets,” says Nighbor. “All forest products, including lumber, pulp and paper and value-added products, must remain a priority in any future negotiations with the U.S. A fair, predictable and durable trading relationship remains in the interests of both countries.”