U.S. Lumber Coalition Criticizes Canada's Increased Lumber Subsidies Amid Trade Tensions

U.S. Lumber Coalition Criticizes Canada's Increased Lumber Subsidies



On November 26, 2025, the U.S. Lumber Coalition issued strong criticisms against the Canadian government's recent announcement of substantial subsidies aimed at supporting the lumber industry. According to the Coalition, these actions represent a troubling escalation in Canada's unfair trade practices, particularly in light of ongoing trade tensions with the United States.

Canadian Prime Minister Carney's government declared yet another round of subsidies designed to address what they call excessive production and overcapacity in the country's lumber sector. This comes on top of numerous multi-billion dollar subsidy announcements made since August 2025. The U.S. Lumber Coalition argues that these subsidies are not merely an attempt to bolster the Canadian lumber industry but are rather strategically timed responses to various trade enforcement mechanisms imposed by the U.S. Government under President Trump.

Zoltan van Heyningen, the Executive Director of the U.S. Lumber Coalition, expressed deep concerns about what he described as Canada's irresponsible approach to its sad overcapacity problem. "Canada should take immediate steps to rectify its significant lumber overcapacity, which directly contributes to the unfair trade situation we are facing today," he stated. He further emphasized the Coalition's commitment to advocating for U.S. businesses and workers who are impacted by these unfair practices.

As a consequence of these subsidies, the U.S. Lumber Coalition expects ongoing collections of duties at U.S. borders. As of today, Canadian lumber companies have collectively paid over $7 billion in duties due to U.S. trade enforcement actions. The Coalition warned that these new subsidies will only prolong and intensify the battle over softwood lumber trade, creating a situation where U.S. tariffs will have to remain in place as a countermeasure.

Andrew Miller, Chair, and Owner of Stimson Lumber Company, echoed van Heyningen's remarks by stating, "It is outrageous that we continue to witness Canada's entitlement to manipulate our trade laws at the expense of American workers. Without government subsidies, the Canadian softwood lumber industry would struggle to compete on its own."

The Coalition believes that these subsidies threaten the livelihoods of U.S. workers in the lumber sector and endanger the overall health of American lumber industries. "This cycle of new subsidies must cease immediately. We urge President Trump to consider additional regulatory measures to respond effectively to Canada's ongoing trade violations, which are harming our own market," Miller concluded emphatically.

The U.S. Lumber Coalition is an alliance formed by various softwood lumber producers across the United States, advocating for fair trade practices and a competitive market environment. They assert the significance of enforcing U.S. trade laws, which they believe will encourage local investment, bolster the economy, and ultimately benefit American consumers by ensuring a stable supply of lumber for housing and construction.

Prominent among its criticisms, the Coalition cited a series of subsidy measures announced by the Canadian government, including:
  • - $700 million loan guarantees initiated in August 2025, followed by an additional $500 million to help Canadian producers cover operational costs.
  • - Proposals to invest over $500 million into programs designed to enhance global competitiveness of Canadian lumber products.
  • - A focused reskilling package aimed at training workers affected by tariffs and market shifts, promising an investment of $450 million over three years.
  • - Various regional response initiatives designed to mitigate the impact of U.S. tariffs on local businesses.

The Coalition insists that such aggressive governmental support for the Canadian lumber industry not only perpetuates the trade imbalance but also becomes detrimental to American workers and communities reliant on the forestry sector. As the dispute continues, the U.S. Lumber Coalition is steadfast in its resolve to pursue all necessary actions to protect U.S. jobs and maintain fair competition in the lumber market.

Further complicating the matter, ongoing Canadian subsides align with a troubling trend of increasing trade protectionism that many fear could escalate into a protracted trade war between the two neighboring countries. The Coalition remains vigilant, continually urging both government and industry stakeholders to confront and counter Canada's unfair trade practices head-on, advocating for a resolution that restores equity and opportunity for American workers.

Topics Policy & Public Interest)

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