A potential 25% tariff on Canadian goods, including lumber, by the U.S. government, has sparked alarm within New Brunswick's forestry sector. Industry leaders warn of severe economic consequences for the province.
The New Brunswick Lumber Producers, Forest NB, and J.D. Irving, Limited, jointly released information emphasizing forestry's paramount role in the provincial economy. Already facing over 14% in countervailing and anti-dumping duties on softwood lumber, an additional 25% tariff would be devastating.
Over 80% of New Brunswick's forest product exports, encompassing various lumber types, pulp, paper, and even Christmas trees, cross the U.S. border. Industry representatives stress that U.S. consumers would face higher prices and fewer choices.
Forestry is the backbone of New Brunswick's economy, employing 24,000 people, many in rural communities. It contributes $2.8 billion in exports and $1.4 billion in employment income. With seven out of ten municipalities housing forestry businesses, the impact would be widespread.
The province has a long history of trade partnerships with the eastern U.S., particularly Maine, with cross-border collaboration predating Confederation. Many companies have operations and employees on both sides of the border.
Industry leaders highlighted Canada's ability to efficiently meet nearly a quarter of U.S. lumber needs, citing existing processes and partnerships. They argue that tariffs would disrupt a deeply integrated supply chain, driving up housing costs and hurting American consumers.
They also stated that tariffs will not stimulate US domestic investment in pulp and paper or value-added wood products. Rather, they will disrupt a supply chain that took decades to build.
"These new tariffs will create significant, wide-reaching impacts for New Brunswick’s forestry sector," said a joint statement. "And its impacts on the New Brunswick economy cannot be understated."
The organizations pledged to work together with elected officials and industry partners to navigate these challenging times.
Forest NB is a non-profit industry association representing the forest products sector in dealings with government and the public.
J.D. Irving, Limited has been committed to developing and delivering quality products and services since it was founded in 1882. With head offices in Saint John and Moncton, New Brunswick, the diverse, family-owned company contributes to eight business sectors including forestry and forest products.
The New Brunswick Lumber Producers (NBLP) are an integral part of NB’s forest value chain, operating in 15 rural communities and representing 95 per cent of the softwood lumber production in the province.
