The possibility of an additional 25% tariff on Canadian forest products, imposed by the United States government, raises concerns in the New Brunswick forest sector. Organizations such as the New Brunswick Lumber Producers, Forest NB and J.D. Irving, Limited warn of negative impacts on the local economy and on the cost of products for consumers in the US.
Currently, Canadian producers of softwood lumber already face countervailing and anti-dumping tariffs of more than 14%. With a new charge, the competitiveness of New Brunswick’s exports would be even more affected, damaging a sector whose main destination is the American market. Among the products that would suffer from the measure are lumber, pulp, paper, shingles, oriented strand board and Christmas trees.
ECONOMIC IMPORTANCE OF THE FORESTRY SECTOR
The forestry sector plays an essential role in the province’s economy, employing 24,000 workers, many in rural communities. It also generates US$2.8 billion in exports and US$1.4 billion in income. As it is a highly interconnected production chain, any change can have a significant impact on many companies and workers in the region.
CONSOLIDATED TRADE RELATIONSHIP BETWEEN CANADA AND THE US
New Brunswick has a historical trade relationship with the eastern United States, especially with Maine, where economic integration predates the Canadian Confederation. Many companies operate in both countries, reinforcing economic interdependence. The implementation of the new tariffs threatens this connection and could destabilize the sector.
IMPACT ON THE MARKET AND THE CONSUMER
The United States faces a deficit in lumber production, and Canada supplies around 25% of this need. Increased tariffs would force Canadian producers to readjust prices, raising the cost of housing and various forest products for American consumers. In addition, sectors such as pulp and paper would see no incentive for new investments in the US, only suffering from the imbalance of a supply chain consolidated over decades.
Faced with this scenario, industry representatives in New Brunswick stress the importance of dialogue between the two countries in mitigating negative economic impacts and preserving strategic trade relations.
