OTTAWA, Ontario, August 25, 2026 — Forest Products Association of Canada (FPAC) welcomes today’s federal announcement of measures to support Canadian businesses, employees, and communities affected by U.S. tariffs.
“We appreciate the government’s quick action to address the serious pressures facing Canadian industries and impacted families,” said Derek Nighbor, President and CEO of FPAC. “The forest sector has been one of the hardest hit sectors in this ongoing trade dispute. Duties and tariffs on billions of dollars worth of our products now range from 25% to 85%. The addition of Section 338 tariffs over the weekend make immediate federal support essential to help keep facilities operating and employees connected to their places of work,” Nighbor added.”
The effectiveness of today’s measures will depend on how quickly support reaches affected companies, how straightforward it is to access, and how well it responds to the different circumstances facing businesses across the forest products value chain.
FPAC is already reviewing the details with its members and labour partners and appreciates the early outreach from members of Prime Minister Carney’s Cabinet about their readiness to work closely with us to ensure these measures hit the mark. Canada’s forest sector directly employs nearly 200,000 people in hundreds of rural and northern communities across Canada. The sector entered this latest trade escalation already facing long-standing softwood lumber duties, separate Section 232 tariffs, weak U.S. markets, rising operating costs, and domestic competitiveness challenges.
New U.S. tariffs not only put Canadian forestry jobs at risk, but they are putting an already weak American economy at greater risk too. By comparison, July numbers show that while housing starts in Canada were down 4%, they were down 13% in the United States. These tariffs are bad news for the U.S. housing market and for American families.
Here at home, product and market diversification, innovation, and transformation remain essential to the sector’s long-term future. These investments take time therefore supports must reflect the immediate challenges companies and communities are facing. In addition to today’s announcement, we need the federal government to commit to acceleration of regulatory reform and operating cost reduction measures so we can improve Canadian competitiveness and at the same time maintain our high environmental standards.
“No support package can replace reliable access to our largest export market but it is urgently needed in this moment,” Nighbor added. “Canada must continue pressing for the removal of unjustified tariffs and a durable resolution to the softwood lumber dispute, while also addressing the regulatory, transportation, and competitiveness challenges within our own control.”
Read more
· FPAC Calls for Immediate Action as New U.S. Tariffs Hit Canada’s Forest Sector
· We Grow to Build Canada: A Forest Sector Action Plan for Canada’s Government
About FPAC
FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry, we contributed $19.9B in real GDP in 2025.
Canada's forest products sector is one of the country’s largest employers—providing nearly 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 across-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.
