Prime Minister Mark Carney listens while touring the Royal Canadian Navy torpedo recovery vessel Sikanni at the Canadian Forces Maritime Experimental and Test Ranges (CFMETR), in Nanoose Bay, B.C., on Monday, Aug. 4, 2025. THE CANADIAN PRESS/Darryl Dyck

By Canadian Press

amidst the tariffs

Prime Minister Carney announces new support measures for softwood lumber industry

Aug 5, 2025 | 2:47 PM

Prime Minister Mark Carney’s government is preparing financial supports for the forestry sector as the U.S. ratchets up duties on Canadian softwood lumber.

Carney, who was speaking at a media event in West Kelowna, is promising an aid package for the industry that includes $700 million in loan guarantees and $500 million for long-term supports to help companies diversify export markets and develop their products.

It comes in the wake of heightened trade tensions with the U.S. over softwood lumber, a longtime point of friction in the Canada-U.S. trade relationship.

The U.S. Commerce Department recently announced it intends to hike anti-dumping duties on Canadian softwood to just over 20 per cent.

That’s a marked increase since the last time the U.S. reviewed the rate, which previously was just over 7 per cent.

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Carney also says the government will introduce a training program for workers which will include some $50 million for the forestry sector.

The BC Lumber Trade Council (BCLTC) welcomed the new federal support measures for Canada’s softwood lumber industry.

It said while resolving the long-running softwood lumber dispute with the United States must remain the government’s top trade priority, interim support is needed to help Canadian producers weather current challenges.

“We appreciate the federal government’s recognition that support is necessary in the face of ongoing trade uncertainty” said BCLTC President Kurt Niquidet.

The Council pointed to the importance of liquidity assistance and help for forestry workers at a time when Canadian companies are grappling with competitiveness challenges and unjust duties imposed by the U.S.

Meanwhile, the BC Council of Forest Industries (COFI) also welcomed the announcement by the Prime Minister.

While securing a long-term agreement to resolve the ongoing trade dispute must remain a top national priority, these supports provide critical relief during an exceptionally challenging time.

“This support comes at a critical moment for forestry workers, communities, and companies across the country,” said Kim Haakstad, President and CEO of COFI. “Initiatives aimed at supporting workers, fostering innovation, enhancing liquidity, and promoting export development through organizations like Canada Wood are important steps toward stabilizing the sector and supporting government efforts to build more homes for Canadians. These investments also lay the foundation for long-term competitiveness.”

“It’s significant that this announcement was made in British Columbia — home to Canada’s largest forest industry — where compounding pressures have been particularly acute.”

This report by The Canadian Press was first published Aug. 5, 2025.