Financial aid is on the horizon for Canada’s softwood lumber industry, as stated by the federal industry minister during a meeting with a business group in Fredericton. Mélanie Joly confirmed that the assistance will involve financial backing facilitated through banks with support from the Business Development Bank of Canada. Prime Minister Mark Carney had pledged $1.25 billion for the sector back in August, but this funding has yet to be dispersed.
While the exact amount earmarked for the New Brunswick industry was not disclosed, Joly assured the audience that the allocation would be based on necessity. She mentioned that the assistance would come in various forms, including operational support to alleviate liquidity challenges faced by companies dealing with unjustifiable tariffs and funding for capital investments to enable continued business growth.
The financial aid announcement follows U.S. President Donald Trump’s imposition of additional tariffs on softwood lumber on September 30. Trump’s latest measures include a 10% tariff on softwood lumber, supplementing the existing 35% tariff, and a 25% duty on specific finished wood products such as cabinets and upholstered furniture, effective immediately. Further tariff increases are slated for January 1, with duties escalating to 30% for upholstered furniture and 50% for cabinets and vanities.
In addition to the financial support, Joly revealed that the federal government is developing a “buy Canadian” initiative to promote the use of New Brunswick’s softwood lumber in domestic construction projects and major developments.