Canada’s softwood lumber industry is set to receive financial assistance soon, as confirmed by the federal industry minister in a meeting with a business group in Fredericton. Mélanie Joly mentioned that the support will involve funding facilitated by banks but guaranteed by the Business Development Bank of Canada.
Although Prime Minister Mark Carney pledged $1.25 billion for the sector back in August, the disbursement of the funds is pending. The exact amount earmarked for the New Brunswick industry was not disclosed by Joly, but she assured the Fredericton Chamber of Commerce that it would be based on necessity and provided in various forms.
Prime Minister Mark Carney pledged $1.25 billion for the sector in August, with payments set to commence shortly, according to Federal Industry Minister Melanie Joly.
“The assistance will cover operational support to address liquidity challenges faced by companies due to unjustifiable tariffs, alongside funding for capital expenditures to facilitate ongoing investments,” she explained.
New trade tariffs
The financial aid follows the announcement of new tariffs by U.S. President Donald Trump on September 30. Trump revealed an additional 10 per cent tariff on softwood lumber, supplementing the existing 35 per cent duty, and introduced a 25 per cent tariff on select finished wood products such as cabinets and upholstered furniture. These tariffs became effective on Tuesday.
Subsequently, duties are slated to rise on January 1 to 30 per cent for upholstered furniture and 50 per cent for cabinets and vanities.
In conjunction with the financial support, Joly highlighted the government’s efforts towards implementing a buy Canadian initiative to promote the use of softwood lumber from New Brunswick in domestic construction projects and major developments.