British Columbia Lumber Industry Faces Uncertain Future Amid Tariff Threats
British Columbia's lumber industry is facing uncertainty due to potential U.S. tariffs, threatening investment and job security amidst rising demand for lumber post-wildfires.
British Columbia's lumber industry is facing uncertainty, as looming tariffs threaten to decimate the sector.
"We don't know what's going to happen, businesses don't like to not know what's coming because you can't make investment plans," said Nick Arkle, CEO of Gorman Bros. Lumber.
As B.C.'s top lumber export destination, the U.S. is critical to the industry -- meaning President Donald Trump's 25 per cent tariff threat could deal a devastating blow.
"About 60 per cent of our lumber in B.C. for the last couple of years has been going to the U.S., which in a way is funny because we have the president saying 'We don't need their trees.' Well, that's false. They do need our trees," BC Forest Minister, Ravi Parmar said.
Gorman Bros. Lumber in West Kelowna sends about 50 per cent of its product to the States, while about 30 per cent stays in Canada.
"The U.S is a strong market, you never want to walk away from a market, where first of all you have loyal friends, partners, and customers, people we've sold to for 30 to 40 years in some cases," Arkle said.
Already dealing with U.S. duties of 14.4 per cent, and the industry is bracing for that to rise to 30 per cent in August. The softwood lumber industry could face even more pain from Trump's tariffs.
"Our understanding is, and when you look at the order from the White House, is that the tariff would be in addition to that so potentially we could be facing by the end of the year a combination, 30 per cent plus 25 per cent, that would be devastating," Arkle said.
Parmar added that could lead to mill closures and potentially put workers in a tough position.
However, Canada could gain the upper hand, with projected lumber demand soaring as California rebuilds after devastating wildfires.
"As they look to rebuild they know that it's going to cost upwards of 50 per cent more because of the tariffs and duties going up, so a lot of work happening on this file," Parmar said.
Locally, the goal is to prevent rising lumber costs from jeopardizing future housing affordability.
