B.C. forest industry groups are closely watching the latest high-stakes round of Canada-U.S. trade talks.
The B.C. Council of Forest Industries and the B.C. Lumber Trade Council welcomed news Wednesday that U.S. President Donald Trump had announced a three-day pause on the implementation of proposed 50 per cent tariffs on a range of Canadian goods.
The tariffs had been scheduled to take effect just after midnight Wednesday morning.
A presidential proclamation moved the effective date to Aug. 22.
“Substantial progress has been made, although there is important work still to be done,” Prime Minister Mark Carney said in a statement Tuesday.
His statement did not describe or confirm the specific commitments outlined by Washington.
Trump told reporters in Washington Wednesday it would be “a very fair deal” for both countries.
“Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated, down to zero,” said Trump, noting the agreement was subject to the finalization of documents.
Kim Haakstad, interim president of the B.C. Lumber Trade Council, said it is not yet clear what the implications are for Canada’s forest sector.
“It was getting stressful yesterday as we got close to the deadline — we didn’t know what was going to happen, so a pause is very good news,” said Haakstad in an interview. “It sounds like we actually do have a deal, and that’s even better news, I believe, for Canadians broadly, and we’re waiting for more information about how that impacts forestry.”
Trump threatened to impose the 50 per cent tariffs under Section 338 of the U.S. Tariff Act of 1930. The tariffs imposed on Canadian goods in 2025 were imposed under different U.S. trade authorities. The White House has confirmed the new measures were being imposed under Section 338.
B.C.’s lumber industry has been particularly affected by U.S. duties. Most Canadian goods that meet the rules of origin under the Canada-United States-Mexico Agreement are exempt from the broad U.S. tariffs, but softwood lumber is subject to separate duties. Federal government figures put the combined duty and tariff rate facing most Canadian softwood lumber exporters at about 45 per cent.
The proposed Section 338 tariffs would apply to a wide range of Canadian products, including processed wood products such as plywood and other wood products.
Haakstad said she is happy to see those additional tariffs may not go ahead, but the industry remains concerned about the potential “stroke-of-the-pen” risks regarding U.S. trade policy.
“[It] kind of means that, without a lot of process or congressional approval, the U.S. can change tariff rates and the tariffs that are applied,” said Haakstad. “So we’d like to see the minimization of that, because that creates more opportunity for businesses to plan and invest and succeed both in Canada and the U.S.”
B.C. Forests Minister Ravi Parmar was not available for comment on the trade deal Wednesday.
—With files from John White
