Financial assistance for Canada’s softwood lumber industry is set to arrive soon, according to the federal industry minister who addressed a business group in Fredericton. Mélanie Joly revealed that the aid package would involve funding channeled through banks but guaranteed by the Business Development Bank of Canada. Prime Minister Mark Carney had pledged $1.25 billion for the sector in August, although the disbursement is pending.
While the exact amount earmarked for New Brunswick’s industry was not disclosed by Joly during her talk at the Fredericton Chamber of Commerce, she assured that the allocation would be based on requirements. She mentioned that the financial support would come in various forms, including operational assistance to alleviate liquidity challenges faced by companies dealing with unjustifiable tariffs, as well as capital funding to support ongoing investments in their businesses.
The funding initiative follows the imposition of new tariffs by U.S. President Donald Trump on September 30. Trump announced an additional 10% tariff on softwood lumber, supplementing the existing 35% duty, along with a 25% tariff on selected finished wood products like cabinets and upholstered furniture, which took effect recently. Subsequently, the duties are slated to rise on January 1 to 30% for upholstered furniture and 50% for cabinets and vanities.
In addition to the financial aid, Joly disclosed that the federal government was actively developing a buy Canadian program to promote the use of softwood lumber from New Brunswick in domestic construction projects and major developments.
