OTTAWA — Canadian lumber producers are bracing for fresh financial strain after U.S. President Donald Trump announced new tariffs on softwood lumber and wood-based products, escalating an already tense trade dispute between the two countries.
A presidential proclamation issued Monday evening imposes a 10 per cent duty on imports of softwood timber and lumber and a 25 per cent levy on kitchen cabinets, vanities, and other upholstered wooden products. The tariffs take effect October 14, with rates scheduled to increase further in the new year. Beginning January 1, tariffs on kitchen cabinets and vanities will rise to 50 per cent, while levies on other upholstered wooden goods will climb to 30 per cent unless a negotiated agreement is reached.
The White House defended the move, citing a probe by U.S. Commerce Secretary Howard Lutnick that concluded Canadian imports pose a threat to “the national security of the United States.” Trump has directed the Commerce Department to review the matter again by October 2026 to determine if further measures are needed.
Canadian industry leaders swiftly condemned the tariffs. The British Columbia Lumber Trade Council called the duties “misguided and unnecessary,” warning they will only worsen housing affordability in the U.S.
“These tariffs will not improve U.S. national security — they will only drive up lumber costs, making housing even less affordable for American families and undermining the integrated trade relationship that benefits both our countries,” said council president Kurt Niquidet.
The new duties come on top of existing anti-dumping and countervailing tariffs already facing Canadian producers, which total more than 35 per cent. With the additional tariffs announced Monday, import taxes on Canadian softwood lumber could now exceed 45 per cent.
“This will impose needless strain on the North American market, threaten jobs on both sides of the border, and make it harder to address the housing supply crisis in the United States,” the council said.
Market analysts echoed those concerns. RBC analyst Matthew McKellar warned that the tariffs could accelerate supply cutbacks in Canada, noting that lumber producers were already struggling in a weak market. “With a date for new tariffs to take effect now set, we wonder if lumber prices could push higher over the next two weeks,” McKellar wrote in a note to investors.
Canada has recently adjusted its legal approach in the dispute. Earlier this month, Global Affairs Canada dropped two legal challenges of U.S. duties on Canadian softwood lumber, calling the move a strategic decision aimed at preserving leverage in ongoing negotiations. Ottawa is still pursuing six other challenges against American trade measures.
Prime Minister Mark Carney has pledged federal support for the sector, announcing last month a relief package that includes $700 million in loan guarantees and $500 million in long-term supports to help companies diversify export markets and develop new products.
The new tariffs mark another escalation in a decades-long trade dispute that has repeatedly strained Canada-U.S. relations and placed workers and communities in forestry-dependent regions under growing uncertainty.