{"id":99725,"date":"2026-08-26T06:47:32","date_gmt":"2026-08-26T06:47:32","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=99725"},"modified":"2026-08-26T15:29:47","modified_gmt":"2026-08-26T15:29:47","slug":"b-c-forestry-in-the-absolutely-worst-situation-it-has-ever-faced","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/b-c-forestry-in-the-absolutely-worst-situation-it-has-ever-faced\/","title":{"rendered":"B.C. forestry in the \u2018absolutely worst situation\u2019 it has ever faced"},"content":{"rendered":"

British Columbia\u2019s forest industry is in the \u201cabsolutely worst situation\u201d it has ever faced with the latest U.S. tariffs arriving when the province is already dealing with a sharply reduced timber harvest, high operating costs and a heavy trade burden on softwood lumber.<\/p>\n

\u201cUnequivocally, this is the worst, absolutely worst situation we've ever been in,\u201d David Elstone, strategic adviser to the forest industry said.<\/p>\n

His assessment followed the introduction of a 50% U.S. tariff on a broad group of Canadian goods after trade negotiations between Washington and Ottawa broke down. For the forest industry, the measure extends well beyond softwood lumber and brings a large part of the downstream wood-processing sector into the dispute.<\/p>\n

Almost C$1 billion of B.C. forest products caught by new tariff<\/strong><\/p>\n

Elstone estimates that almost C$1 billion worth of B.C. forest products exported to the U.S., based on 2025 trade, are affected by the new 50% Section 338 tariff. B.C. forest product exports have generated around C$13-14 billion in annual sales in recent years.
\nAt Canadian level, Forest Products Association of Canada president Derek Nighbor put the amount of forest products affected at more than C$4 billion.<\/p>\n

<\/a>
David Elstone, strategic adviser to British Columbia\u2019s forest industry and publisher of the View from the Stump newsletter, has described the current conditions facing the province\u2019s forestry sector as the worst he has seen.<\/figcaption><\/figure>\n

The list is extensive. It includes plywood, veneer, MDF and other fibreboard, particleboard, engineered wood products, mouldings, doors, frames and fencing. Pulp, writing paper, packaging products and tissue are also among the affected categories.<\/p>\n

The new measure therefore reaches considerably further into the forest products chain than the long-running softwood lumber dispute.<\/p>\n

Softwood lumber already carries around 45% trade burden<\/strong><\/p>\n

For B.C. sawmills, the 50% tariff comes on top of an existing trade conflict rather than replacing it.<\/p>\n

Elstone said Canadian softwood lumber entering the U.S. already faces combined anti-dumping and countervailing duties of around 35%, together with an additional 10% tariff. He put the total current burden on softwood lumber at approximately 45%.<\/p>\n

B.C. remains Canada's largest lumber-producing province and the U.S. remains its dominant export destination. The geographical and commercial relationship is difficult to replicate elsewhere: U.S. buyers absorb large volumes, the market is close to B.C. mills and prices are generally higher than in many overseas destinations.<\/p>\n

The latest measures are therefore hitting two different parts of the business. Commodity softwood lumber remains subject to its existing duties and tariff, while many processed forest products now face the separate 50% tariff.<\/p>\n

Value-added strategy also hit<\/strong><\/p>\n

The inclusion of processed wood products is particularly serious for B.C. because value-added manufacturing has repeatedly been promoted as a way of reducing the province\u2019s exposure to commodity lumber and extracting more value from a shrinking timber supply.<\/p>\n

Elstone noted that the decades-long softwood lumber conflict had itself provided an incentive for producers to manufacture other products. The latest U.S. action now catches many of those alternatives.<\/p>\n

Plywood, veneer, MDF and other panels are among the products affected. The tariff also extends further downstream into doors, frames, fencing and other manufactured wood products.<\/p>\n

\u201cThese tariffs are now targeting those alternative products,\u201d Elstone said, adding that the measure undermines attempts to diversify away from commodity lumber.<\/p>\n

The impact is therefore not limited to large commodity sawmills. Secondary manufacturers that purchase lumber, panels or other fibre products and sell finished or semi-finished products into the U.S. are also exposed.<\/p>\n

B.C. timber harvest down by more than half<\/strong><\/p>\n

The trade dispute comes after a major contraction in B.C.\u2019s domestic timber supply.<\/p>\n

Elstone said the provincial harvest has fallen by more than 50%. He linked the reduction to forest policy decisions within British Columbia, including restrictions on areas available for harvesting, old-growth policy and a growing number of regulatory processes affecting forestry operations.<\/p>\n

The reduction in harvest has already changed the economics of the province's forest industry. Less available timber means greater competition for logs and fewer tonnes of residual fibre for pulp, pellet and other wood-processing operations.<\/p>\n

Elstone also pointed to the cost of regulatory changes introduced in recent years. In his view, the combination of reduced access to timber and additional processes has made B.C. producers increasingly uncompetitive against suppliers outside the province.<\/p>\n

This domestic cost problem becomes more important when exporters are asked to absorb additional tariffs in their largest foreign market.<\/p>\n

Overseas markets cannot quickly replace the U.S.<\/strong><\/p>\n

The deterioration in Canada-U.S. trade relations has renewed calls for Canadian forest companies to sell more products outside North America, but industry representatives see limited scope for a rapid shift in volumes.<\/p>\n

Elstone described export diversification as a viable medium- to long-term strategy, rather than an immediate replacement for the U.S. market.<\/p>\n

\u201cYou have to build relationships. You have to make the products that the international market wants. Every country has a different specification,\u201d he said.<\/p>\n

For lumber producers, changing destination can require different dimensions, grades, packaging and other specifications. Mills also need established importers and distribution channels.<\/p>\n

The economics are another constraint. B.C. has traditionally been able to serve the U.S. by rail and truck, while shipments to Asian and other overseas markets require additional inland transport, port handling and ocean freight.<\/p>\n

Kim Haakstad, CEO of the B.C. Council of Forest Industries, said Canadian products are already becoming more expensive than those supplied by some international competitors. She linked the problem partly to the cost of harvesting and federal and provincial regulatory requirements.<\/p>\n

That makes the search for alternative markets more difficult precisely when companies need them most.<\/p>\n

Industry calls for action on costs at home<\/strong><\/p>\n

With international trade policy largely in federal hands, Elstone said the B.C. government should concentrate on measures it can take within the province.<\/p>\n

He called for action on competitiveness and said the provincial government should respond to problems that forest companies have repeatedly raised over timber access, regulation and operating costs.<\/p>\n

The immediate problem for B.C. mills is no longer one single weak market or one additional duty. The province has substantially less timber available than in the past, softwood lumber faces an estimated 45% burden at the U.S. border, and a separate 50% tariff now covers close to C$1 billion of other B.C. forest product exports.<\/p>\n

For an industry still heavily dependent on the U.S. market, the duration of the latest tariffs will determine how much of that additional cost can be absorbed before more production becomes uneconomic.<\/p>","protected":false},"excerpt":{"rendered":"

British Columbia\u2019s forest industry is in the \u201cabsolutely worst situation\u201d it has ever faced with the latest U.S. tariffs arriving when the province is already dealing with a sharply reduced timber harvest, high operating costs and a heavy trade burden … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":99726,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nB.C. forestry in the \u2018absolutely worst situation\u2019 it has ever faced - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/b-c-forestry-in-the-absolutely-worst-situation-it-has-ever-faced\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"B.C. forestry in the \u2018absolutely worst situation\u2019 it has ever faced - 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