Financial assistance is on the horizon for Canada’s softwood lumber industry, as confirmed by the federal industry minister during a presentation to a business group in Fredericton. Mélanie Joly indicated that the aid package will involve financial backing from the Business Development Bank of Canada to facilitate funding through banks. Although Prime Minister Mark Carney pledged $1.25 billion for the sector in August, the allocation of these funds is pending.
Joly refrained from specifying the exact financial support earmarked for the New Brunswick industry but assured the audience at the Fredericton Chamber of Commerce that the distribution will be based on the industry’s requirements. She emphasized that the support would come in various forms, including operational assistance to address liquidity challenges faced by companies grappling with unjustifiable tariffs.
The announcement of new tariffs by U.S. President Donald Trump on September 30 has spurred the urgency for financial aid. Trump unveiled an additional 10% tariff on softwood lumber, supplementing the existing 35% tariff, along with a 25% duty on select finished wood products like cabinets and upholstered furniture, which took effect recently. Further tariff hikes are slated for January 1, with duties set to escalate to 30% for upholstered furniture and 50% for cabinets and vanities.
In parallel to the financial support, 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 developments.
