Businesses in New Brunswick heavily reliant on the softwood lumber sector are preparing for challenging times following the announcement of new tariffs by U.S. President Donald Trump on September 30. The additional tariffs include a 10% levy on softwood lumber, on top of the existing 35% tariff, as well as a fresh 25% duty on certain finished wood products such as cabinets and upholstered furniture, set to take effect on October 14. Subsequently, the duties will rise to 30% for upholstered furniture and 50% for cabinets and vanities starting January 1.
New Brunswick Premier Susan Holt has urged Prime Minister Mark Carney to prioritize addressing the softwood lumber tariffs, emphasizing the significant impact on communities where one in every 11 workers relies directly on forest products. Ron Marcolin, the New Brunswick vice president of Canadian Manufacturers and Exporters, described the latest tariffs as a significant development in the prolonged dispute over softwood lumber, noting the challenges of navigating this ongoing issue with the U.S. being a major market.
One of the companies affected by the new tariffs is Glenwood Kitchens in Shediac, which specializes in kitchen cabinets and bathroom vanities. Owner James McKenna expressed concerns about potential manufacturing slowdowns but emphasized the goal of avoiding layoffs by managing the workforce through attrition. While McKenna is exploring opportunities to expand into new markets to compensate for the loss in U.S. sales, he acknowledged that the American market holds a unique importance due to its proximity and demand.
Despite efforts to diversify into other regions like the Caribbean and expand existing markets, the reliance on the American market remains crucial for New Brunswick businesses. Marcolin highlighted the mutual reliance between New Brunswick and the U.S., noting that American demand for softwood lumber exceeds domestic supply, leading to imports from Canada. He also emphasized the superior quality of Canadian softwood lumber compared to American products.
