Canada-U.S. Trade Discussions
August 19, 2026 - The Forest Products Association of Canada welcomes the decision to pause the implementation of the Section 338 tariffs while Canada and the United States work to finalize an agreement.
We are encouraged by the progress being made and appreciate the Government of Canada’s continued efforts to secure a fair outcome that supports Canadian employees, businesses and forestry communities.
The pause avoids an immediate new disruption for affected forest products. Important issues remain unresolved, however, including the Section 232 tariff on lumber and the long-standing softwood lumber dispute. We will be looking closely at the final agreement and what it means for the full range of Canadian forest products.
Reducing trade barriers on lumber and other forest products would strengthen businesses on both sides of the border, lower costs for U.S. consumers and support efforts to improve housing affordability. Canada and the United States share a deeply integrated forest-products market, and greater certainty would benefit workers, communities and customers across North America.
FPAC is ready to work with the Government of Canada and our industry partners toward a fair, predictable and durable outcome for the sector.
