Lumber prices dropped below $650 per thousand board feet after briefly nearing a one-year high, as new U.S. tariffs on most Canadian wood products pressured the market. While Canadian softwood lumber itself was excluded from Washington’s new 50% tariffs, 98 other categories of wood-related goods remain subject to the duties, dashing hopes for a broader lumber carve-out.
In response, the Canadian government announced additional financial support for lumber producers in Western Canada to help cushion the impact of tariffs and ongoing trade uncertainty. The Forest Products Association of Canada condemned the U.S. measures as a direct blow to the country’s forestry sector, where mills are already running below capacity and facing Canadian duties of nearly 35% on lumber that have led to production cuts and mill closures.
At the same time, wildfires across Western Canada continued to threaten lumber supply, and President Donald Trump warned that wildfire-related costs could be folded into existing duties.
