The federal government is stepping in with swift financial relief for Canada’s beleaguered softwood lumber industry, which continues to face steep U.S. tariffs. Industry Minister Mélanie Joly announced in Fredericton that new funding, supported by the Business Development Bank of Canada (BDC), will be available in the coming days through the country’s banking system. The move aims to keep lumber companies afloat as they confront what Joly called “unjustifiable” trade duties.
Joly emphasized that the program is designed to support businesses of all sizes across the country by providing flexible funding tailored to each company’s operational and capital needs. “We’re cutting red tape and using the banking system to make sure funding is available,” she said, underscoring that the allocation will depend on individual company requirements rather than provincial quotas.
This new financial support builds on Prime Minister Mark Carney’s $1.25-billion aid package unveiled in August. The BDC announced that the latest program will make $700 million in new term loans or letters of credit accessible through primary financial institutions, making it easier for companies to stabilize operations. Developed in consultation with industry associations, companies, and banks, the program is intended to complement existing financial tools and government support—not replace them.
Energy and Natural Resources Minister Tim Hodgson condemned the ongoing U.S. duties as “unjustified” and pledged that Ottawa will continue to back the sector through a “Team Canada” approach. This includes encouraging Canadians to “Buy Canadian” and increasing the use of domestic lumber in housing and infrastructure projects.
Joly also noted that maintaining a strong domestic lumber industry is not just an economic issue but one tied to national security. “If one day Canada is not in a time of peace, we need to have steel plants, aluminum plants—and lumber too,” she said.
The measures represent a significant push by Ottawa to stabilize a critical industry caught in the crossfire of trade tensions with Washington, while shoring up domestic production for the future.