Financial assistance for the softwood lumber sector in Canada is set to be provided soon, as stated by the federal industry minister during a meeting with a business group in Fredericton. Mélanie Joly mentioned that the support will involve funding facilitated through banks but guaranteed by the Business Development Bank of Canada. Prime Minister Mark Carney had previously pledged $1.25 billion for the sector in August, though the allocation of these funds is pending.
While the specific amount earmarked for the New Brunswick industry was not disclosed by Joly, she assured the Fredericton Chamber of Commerce that the allocation would be based on necessity. She also indicated that the funding would be diverse in nature, catering to operational needs such as liquidity support to alleviate financial burdens caused by unjustifiable tariffs, and capital expenditures to encourage ongoing investments in businesses.
The recent announcement of new tariffs by U.S. President Donald Trump on September 30 has further emphasized the urgency of financial aid. Trump unveiled an additional 10% tariff on softwood lumber, supplementing the existing 35% tariff, and introduced a 25% duty on certain finished wood products like cabinets and upholstered furniture. These tariffs took effect on Tuesday, with plans to raise duties to 30% for upholstered furniture and 50% for cabinets and vanities by January 1.
In addition to the financial package, Joly highlighted the federal government’s initiative to establish a buy Canadian program aimed at promoting the use of softwood lumber from New Brunswick in domestic construction projects and major developments.
