Canada’s softwood lumber sector is set to receive financial aid soon, as confirmed by the federal industry minister during a meeting with a business group in Fredericton. Mélanie Joly mentioned that the support package will involve funding channeled through banks but guaranteed by the Business Development Bank of Canada.
While Prime Minister Mark Carney had pledged $1.25 billion for the industry back in August, the funds have not yet been allocated. Joly did not disclose the specific amount earmarked for the New Brunswick industry but assured the Chamber of Commerce in Fredericton that it would be based on necessity and provided in various forms.
The minister emphasized that the assistance would encompass operational support to address liquidity challenges faced by companies grappling with unjustifiable tariffs. Additionally, funding for capital expenditure would enable businesses to sustain their investments.
The funding initiative follows U.S. President Donald Trump’s imposition of new tariffs on September 30, including a 10% tariff on softwood lumber on top of the existing 35% tariff. Moreover, a 25% duty was introduced on certain finished wood products like cabinets and upholstered furniture, effective immediately. The duties are slated to rise further on January 1 to 30% for upholstered furniture and 50% for cabinets and vanities.
In conjunction with the financial aid, Joly revealed that the federal government is developing a “buy Canadian” program to promote the use of softwood lumber from New Brunswick in domestic construction projects and major developments.