B.C. forestry group welcomes new federal aid amid stiff U.S. tariffs

The head of the B.C. Council of Forest Industries (COFI) says Ottawa’s new support package for lumber is welcome news for a forestry sector she describes as being in its most difficult period in decades.

“When I talk to people who’ve spent their lives in forestry, they say this is the most difficult time they’ve seen,” said Kim Haakstad, president and CEO of COFI.

Haakstad says mills across B.C. are cutting shifts, moving to part-time work, and in some cases shutting down entirely as U.S. tariffs on Canadian softwood — higher than 45 per cent — punish the industry.

“People are trying to be creative, but we’re running out of options without support to keep businesses functioning and communities resilient.”

On Wednesday, Prime Minister Mark Carney announced an additional $500 million in loan guarantees for the Canadian forestry sector, part of a broader package aimed at supporting the country’s lumber and steel companies. Two industries are hard-hit by President Donald Trump’s sporadically escalating tariffs.

Plan includes a “Buy Canadian” policy

The plan tightens quotas on foreign steel imports, introduces new Canadian tariffs on steel, derivative products, increases income replacement for workers by 15 per cent, and promises a “Buy Canadian” policy for federal contracts over $25 million, prioritizing steel and lumber.

Starting next spring, Ottawa says it will also work with railways to cut interprovincial freight rates for steel and lumber by 50 per cent — a move industry groups say could help B.C. mills ship product and access other provinces more easily.

Haakstad says the key now is speed.

“The federal support for the softwood industry that was originally announced in the summer, it wasn’t until mid to late October that companies could actually start applying,” she said.

“We’d like to see this next phase happen more quickly, so we can make decisions and try to keep workers, communities, and manufacturers able to manage the near-term challenges we have.”

She credits Ottawa for staying in close contact with the forestry sector and tweaking programs based on feedback, but says Victoria also has work to do.

“It’s important that we’re also doing the same here in British Columbia — taking action to improve competitiveness and ensure B.C. remains a Canadian and global leader in lumber and forest products.”

The newly announced federal support for the Canadian lumber industry is being rolled out in addition to the $700 million in loan guarantees and $500 million in long-term support promised for the sector in August.