Canada’s Forest Sector Responds to Threats of U.S. Tariffs on Canadian Wood Products

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February 21, 2025

Forest Products Association of Canada (FPAC) today responded to U.S. President Donald Trump’s recent comments regarding proposed tariffs on Canadian wood products, expressing deep concern over the economic impact these measures would have on forest sector employees on both sides of the border and on American families seeking affordable housing.

Derek Nighbor, President and CEO of FPAC, issued the following statement:

“Together, the United States and Canada have built a world-leading forest products industry by leveraging our shared strengths in sustainable forest management, advanced manufacturing, market development, and through our integrated transportation systems.
“Rather than disrupting this highly integrated and well-functioning supply chain, we should be focused on strengthening our competitive advantages, building more affordable housing, working together to address worsening wildfire risks, and bringing more North American wood to the world.
“Unilateral tariff actions drive-up costs, create uncertainty, and slow down efforts to meet the urgent demand for housing on both sides of the border. We urge the U.S. government to reconsider these measures which will be harmful to both our countries.”

FPAC has shared ideas with the Canadian government to strengthen prospects for Canada’s forest sector employees and the communities they call home:

Expand Domestic Wood Use – Prioritize the use of Canadian wood in infrastructure and housing projects and accelerate the building of more affordable units across the country.

Advance Biomass and Pulp Market Opportunities – Deliver on the long-promised Clean Investment Tax Credits for Biomass Conversion to drive innovation, investment, and job creation in Canada’s forest bioeconomy.

Strengthen Trade Resilience – Reinstate full funding for market expansion programs like Canada Wood to open new international opportunities for Canadian forest products.

Cut Red Tape and Regulatory Barriers – Ensure environmental and land-use policies are science-based and do not impose unnecessary restrictions that undermine jobs, investment, and sustainable forestry operations.

“The Government of Canada has a clear opportunity to stand up for Canadian forestry at a time of growing global uncertainty,” Nighbor said. “We need real action to put Canadians first - supporting employees and their families, securing stability for our businesses, and protecting the long-term potential of our sector and its people," he added.

FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry with annual revenues exceeding $87.2B, Canada’s forest products sector is one of the country’s largest employers—providing 200,000 direct jobs and operating in hundreds of communities across the country. Our members are committed to collaborating with Indigenous leaders, government bodies, and other key stakeholders to develop a cross-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.

For more information contact:
Kerry Patterson-Baker
Vice President, Communications and Public Affairs
kpatterson-baker@fpac.ca
(613) 563-1441 x 314
Follow FPAC on LinkedIn
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