Companies in New Brunswick’s softwood lumber sector are preparing for challenging times following the announcement of new tariffs by U.S. President Donald Trump on September 30. This decision includes an additional 10 per cent tariff on softwood lumber, on top of the existing 35 per cent tariff, along with a fresh 25 per cent duty on certain finished wood goods like cabinets and upholstered furniture, scheduled to take effect on October 14. The duties are set to rise to 30 per cent for upholstered furniture and 50 per cent for cabinets and vanities by January 1.
New Brunswick Premier Susan Holt penned a letter to Prime Minister Mark Carney, emphasizing the urgency of addressing the softwood lumber tariffs, highlighting the reliance of one out of every 11 workers in some New Brunswick communities on forest products. The potential repercussions of mill closures or cutbacks are anticipated to be immediate and severe, resulting in job losses, reduced government revenues, and limited resources for essential services.
Ron Marcolin, the Vice President of Canadian Manufacturers and Exporters in New Brunswick, described the latest tariffs and duties as a significant development in the ongoing softwood lumber dispute. Despite prevailing in various arbitration courts, the challenge remains substantial due to the dependency on the U.S. market and its influence in the trade dynamics.
Among the impacted entities is Glenwood Kitchens in Shediac, a company specializing in kitchen cabinets and bathroom vanities, with around 20 per cent of its products exported to the United States, predominantly to New England. Owner James McKenna expressed concerns about potential manufacturing slowdowns post-January but emphasized the goal of avoiding layoffs through attrition.
While McKenna’s company anticipates exploring new markets to offset the U.S. sales decline, including regions within New Brunswick and potential expansions in the Caribbean and other territories, the American market’s significance cannot be completely replaced. Marcolin stressed the mutual dependence between New Brunswick and the U.S., noting the inferior quality of American softwood lumber compared to Canadian products and the existing demand-supply dynamics.
The impact of these tariffs on the industry’s future operations remains a critical concern, with the potential for layoffs and disruptions looming large. Despite efforts to diversify markets and explore new opportunities, the repercussions of the U.S. market shift are expected to reverberate throughout the New Brunswick softwood lumber sector.