Canada’s lumber sector is grappling with significant challenges following the imposition of new tariffs by the United States on timber and furniture imports. On October 14, Washington introduced a 10% tariff on imported timber and lumber, alongside a 25% duty on kitchen cabinets, in addition to the existing 35% levy on Canadian lumber. Experts warn that these measures could exacerbate price disparities and strain the already fragile trade relationship between the two nations. Harry Nelson, an associate professor of forestry at the University of British Columbia, described the combined 45% tariff on Canadian softwood as ‘unprecedented,’ predicting it could persist for at least six months. The tariffs are expected to widen the gap between domestic and export prices, with Canadian lumber prices likely to fall relative to the US market. Beyond the immediate impact on lumber, the broader North American economy could also suffer, with potential declines in housing starts and increased economic uncertainty. Industry groups, including the British Columbia Lumber Trade Council (BCLTC), have expressed deep disappointment, arguing that the tariffs will drive up costs, threaten jobs, and exacerbate the US housing supply crisis. The Canadian government has pledged C$1.2 billion in aid to softwood producers, but experts warn this may be insufficient to address the widespread effects across the interconnected sector. With the US threatening to raise tariffs further in January, pressure is mounting on Canada to negotiate a resolution. Canadian Prime Minister Mark Carney hinted at the possibility of a trade deal ahead of the upcoming APEC Economic Leaders’ Meeting, but uncertainties remain.