Stacks of lumber sit in the storage and sorting yard at the WFP Duke Point Sawmill in Nanaimo, B.C. in October, 2025. B.C. Premier David Eby and provincial Forests Minister Ravi Parmar have warned that B.C.’s ailing softwood industry faces enormous challenges.James MacDonald/The Globe and Mail
The federal government has rolled out financial supports for British Columbia’s beleaguered forestry industry as part of a broader funding initiative to help diversify the sector.
Tim Hodgson, Canada’s Minister of Energy and Natural Resources, said Thursday that $12.4-million will be provided for 14 B.C. projects.
The funds are part of Ottawa’s commitment to provide $2.35-billion in financial supports for Canada’s forestry industry. That includes $1.2-billion in loan guarantees to help lumber producers with operations and $500-million in what Ottawa describes as programs meant to “advance transformative, innovative projects and help Canadian companies diversify their wood production.”
Natural Resources Canada said the latest announcement is under the umbrella of those programs: “These projects will advance new low-carbon wood technologies; expand the use of mass timber in construction; support Indigenous groups and forest sector businesses; increase the capacity of manufacturers to add more value to wood products; and diversify Canada’s export markets for forest products.”
There is also separate funding allotted for grants and contributions in a bid to find new buyers overseas and reduce dependence on the United States.
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B.C. Premier David Eby and provincial Forests Minister Ravi Parmar have said that B.C.’s ailing softwood industry faces enormous challenges and warned of widespread effects to communities and employees.
The largest part of the newly announced funding in B.C. is $7.5-million for Nelson-based Spearhead Timberworks Inc., which specializes in glued, laminated wood products.
Other recipients include Yinka Dene Economic Development LP, Forestry Innovation Investment, B.C. Institute of Technology and Laxyip Management Office Society.
U.S. import taxes on softwood lumber total 45.16 per cent on most Canadian producers, but they could decrease to 34.83 per cent later this year if the U.S. Department of Commerce moves ahead with planned cuts to duty rates.
Earlier this week, the U.S. Lumber Coalition reiterated its opposition to what it views as subsidized softwood lumber from Canada.
“Canadian dependency on the U.S. market coupled with their massive excess lumber capacity has been suppressing and harming U.S. softwood lumber producers and U.S. workers for far too long,” Zoltan van Heyningen, the coalition’s executive director, said in a statement.
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On Thursday, Mr. Hodgson said Ottawa recognizes the importance of helping B.C.’s forestry sector. “Canada’s forests are more than a resource – they are the foundation for good jobs, affordable housing and sustainable economic growth,” he said in a statement issued during his visit to a sawmill in the Vancouver suburb of Richmond.
“We didn’t ask for this trade war,” Mr. Hodgson added during a news conference at the site of Terminal Forest Products. “We need to work together to win.”
The cross-border softwood dispute dates back to the early 1980s, with the fight intensifying since 2017.
Last month, the U.S. Commerce Department said it would reduce duties for most Canadian softwood producers. New duty rates are intended to take effect by early autumn of 2026, subject to further revisions in a final determination.
The Commerce Department currently levies anti-dumping and countervailing duties totalling 35.16 per cent against most Canadian producers.
Last September, U.S. President Donald Trump announced new 10-per-cent tariffs on softwood against Canada on top of the existing duties, citing Section 232 of the U.S. Trade Expansion Act, which allows him to invoke national-security concerns to impose such levies. Those tariffs, which were also imposed on other countries, took effect on Oct. 14.
B.C., which is the country’s largest lumber producer, is still feeling the effects of natural disasters in the past, including the impacts of mountain pine beetle infestations and forest fires.
Last fall, various forestry groups in Canada expressed disappointment over the rollout of the federal financial package, which they say was too slow.