More Sawmill Closures in B.C., Canada

Canfor, one of Canada’s largest softwood lumber companies, announced earlier this month that they will close two more sawmills in British Columbia. West Fraser, another major lumber company, closed a few mills earlier this year. Together, these mills produced about 2.5 million cubic meters of timber and employed over 850 people. The closures impact the workers and many other businesses that depend on these mills, like suppliers and contractors, which is a big problem for the local communities.
The primary catalyst for these closures is the U.S. government’s proposed hike in tariffs on Canadian lumber, from the current 7% to a staggering 15%. This near-doubling of the tariff rate has left many in the industry reeling, as the future of the global timber market hangs in the balance.
While the U.S. government wants to protect its lumber industry, it’s unclear if it can compensate for the lumber supply lost from these Canadian mill closures. This could also affect timber prices outside the U.S. since the U.S. relies on not just Canada but also South America and Europe for lumber.