Canada Pledges Further Financial Support for Lumber Sector — Update

By Paul Vieira

OTTAWA--Canada is expected to unveil further financial support for the tariff-battered forest-products sector, says Resources Minister Tim Hodgson.

He revealed the news to lawmakers during Monday's question-period session in the Canadian legislature. He didn't provide further details, adding he is scheduled to speak with forestry sector leaders on Monday evening. "We will have a new set of supports by the end of the week," Hodgson said.

Hodgson is scheduled to appear Monday before lawmakers on an all-party legislative committee, at which time he might face further questions about the struggling forestry sector.

Back in August, Canada pledged up to 1.25 billion Canadian dollars, or the equivalent of $890 million, to help the country's forest-products sector deal with hefty tariffs from the U.S.

In August, the U.S. Commerce Department tripled the current level of antidumping levies on Canadian softwood lumber, which is used in the building of homes. And in late September, President Trump imposed additional tariffs on imported lumber products which Canadian producers say will increase their duties on U.S.-bound goods to about 45%.

The U.S. has repeatedly said tariffs on Canadian lumber are necessary because Canadian governments were subsidizing the domestic forest-products industry, and that the Canadian sector was dumping--or selling goods into the U.S. at a lower-than-normal price--lumber into the U.S. market. Canada has argued the tariffs are unjustified.

According to the most recent year-to-date data, forest-products exports are down 28%. In response to weak demand and soft prices, companies like Interfor and West Fraser Timber have either closed mills or curtailed production at mills.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

November 24, 2025 15:28 ET (20:28 GMT)