Financial aid for Canada’s softwood lumber industry is set to be provided soon, as stated by the federal industry minister during a presentation to a business group in Fredericton. Mélanie Joly mentioned that the assistance would involve financial resources channeled through banks with backing from the Business Development Bank of Canada. Although Prime Minister Mark Carney pledged $1.25 billion for the sector in August, the funds have not been disbursed yet.
Joly did not disclose the specific amount that the New Brunswick industry would receive but assured the audience at the Fredericton Chamber of Commerce that it would be based on necessity. She added that the funding would come in various forms to cater to different requirements.
The industry minister emphasized the importance of the support, highlighting the provision of operational assistance to address liquidity issues faced by companies dealing with unjustifiable tariffs. Furthermore, she mentioned funding for capital expenditures to enable continued investments in businesses.
The financial aid announcement follows the imposition of new tariffs by U.S. President Donald Trump on September 30. Trump introduced an additional 10 percent tariff on softwood lumber, supplementing the existing 35 percent tariff, along with a 25 percent duty on specific finished wood products such as cabinets and upholstered furniture, effective immediately. These tariffs are expected to escalate on January 1 to 30 percent for upholstered furniture and 50 percent for cabinets and vanities.
In addition to the financial support, Joly revealed that the federal government was actively developing a buy Canadian initiative to promote the use of softwood lumber from New Brunswick in domestic construction projects.