The industry has come under threat from US tariffs
Prime minister Mark Carney announced a series of new measures on Tuesday aimed at transforming Canada’s softwood lumber industry to remain competitive in a shifting global trade landscape.
The strategy, part of a broader industrial plan, focuses on domestic investment, market diversification, and worker support to ensure the long-term resilience of the sector. The announcement comes after the US Department of Commerce recently doubled duties on Canadian softwood lumber products.
At the core of the new plan is a commitment to provide up to $700 million in loan guarantees. This financing and credit support is intended to address immediate pressures, allowing companies to maintain and restructure their operations during this period of transition. An additional $500 million will be invested to “supercharge product and market diversification,” fostering domestic processing and value-added production. This investment will also include initiatives to support Indigenous-led forestry businesses.
The government is also introducing a “Build Canadian” initiative, prioritizing Canadian materials in construction projects and changing federal procurement processes. As the government works to build nearly 500,000 new homes per year over the next decade, it will ensure Canadian lumber is prioritized. A new program, Build Canada Homes, will provide financing to private-sector home builders that use Canadian technologies and resources like mass timber and softwood lumber.
To broaden its international reach, the government will launch a new initiative to diversify export markets for sustainably sourced forest products. Federal programming will be reinvigorated to expand offshore markets for Canadian wood products in fast-growing regions with rising housing demand.
Finally, the plan includes a $50 million investment for upskilling, reskilling, and income supports for more than 6,000 affected softwood lumber workers through the Labour Market Development Agreements. This builds on temporary enhancements to the Employment Insurance program to equip workers with the tools and training needed to adapt to new technologies.
“The forest sector is a pillar of Canada’s economy. As we shift from reliance to resilience, Canada’s new government will ensure the industry can transform to seize new opportunities in Canadian and international markets,” said Carney.
Minister of finance François-Philippe Champagne said, “Canada’s forestry sector is a cornerstone of our economy. It supports nearly 200,000 good jobs in both urban and rural communities and accounts for billions in contribution to Canada’s GDP and exports every year.”
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