Canada’s softwood lumber industry is set to receive financial assistance soon, as confirmed by the federal industry minister during a meeting with a business group in Fredericton. Mélanie Joly indicated that the support package would involve funding channeled through banks but guaranteed by the Business Development Bank of Canada.
Earlier in August, Prime Minister Mark Carney pledged $1.25 billion for the sector, which is yet to be allocated. While Joly did not specify the exact amount earmarked for New Brunswick, she assured the local industry that the allocation would be based on necessity and could take various forms.
Prime Minister Mark Carney committed $1.25 billion in August, pending distribution. Federal Industry Minister Melanie Joly assures that disbursements will commence shortly.
Joly elaborated on the support package, stating, “There is a mix of assistance, including operational support to address liquidity challenges faced by companies grappling with unjustifiable tariffs. Additionally, there is funding for capital investments to foster ongoing company development.”
New tariffs
The funding initiative follows U.S. President Donald Trump’s announcement of new tariffs on September 30. These include an extra 10% tariff on softwood lumber on top of the existing 35% tariff, and a 25% duty on select finished wood products like cabinets and upholstered furniture, which took effect on Tuesday.
Starting January 1, duties will rise to 30% for upholstered furniture and 50% for cabinets and vanities.
In conjunction with the financial aid, Joly revealed the government’s plans for a buy Canadian program to promote the use of New Brunswick’s softwood lumber in domestic construction projects.
