GreenFirst Forest Products has expressed serious concern over the United States government's decision to impose a 25% tariff on Canadian softwood lumber, effective March 4.
The move threatens to destabilize Ontario's forestry sector, which provides thousands of jobs and supports local economies across the province.
Joel Fournier, CEO of GreenFirstJoel Fournier, CEO of GreenFirst, called the decision "highly unfortunate," noting that it would significantly impact the entire industry. "We are actively working with provincial and federal governments, as well as industry associations, to develop a support plan for the sector and to ensure that diplomatic efforts to remove these tariffs are accelerated," said Fournier.
The new tariff is expected to raise the price of lumber and other building materials, which could increase the cost of new homes in the U.S. This comes at a time when the American housing market is already undersupplied, making homeownership even more difficult for financially strained homebuyers.
GreenFirst, an Ontario-based company operating four sawmills in Northern Ontario, employs approximately 800 people and plays a key role in the province's economy. Despite the tariff's potential to disrupt its operations, GreenFirst remains committed to its long-term vision of becoming a top-quartile producer in North America, as outlined in its capital expenditure plan announced in Q4 2024.
To navigate the challenges posed by the tariff, GreenFirst has decided to temporarily pause certain strategic capital expenditures. "While we remain committed to operational excellence, we are adopting a cautious approach to capital allocation in order to safeguard our financial health," Fournier explained.
With a strong balance sheet, GreenFirst is well-positioned to handle the current situation. However, the company continues to monitor the developments closely, urging both federal and provincial governments to take immediate action to support the forestry sector during this challenging time.
GreenFirst Forest Products is dedicated to sustainable forest management and the production of lumber. The company owns four sawmills located in Ontario and operates over 6.1 million hectares of FSC®-certified public forestlands, underscoring its commitment to responsible forest practices and long-term environmental stewardship.
