New Subsidies from Canada Threaten U.S. Lumber Industry Stability and Growth

The U.S. lumber industry is currently facing significant challenges due to recent developments from the government of British Columbia. On February 24, 2026, the British Columbia government announced the initiation of a "stumpage deferral program." This initiative is aimed at supporting Canadian softwood lumber producers, many of whom face substantial excess production capacity. The impending financial assistance is expected to range between USD 124 million to USD 242 million, effectively enhancing the liquidity of British Columbian sawmills over the next 11 months.

Background of the Issue

The U.S. Department of Commerce has conducted several investigations over the past decade, consistently finding that Canadian lumber producers engage in detrimental dumping practices, bolstered by a variety of subsidies from the Canadian government. Evergreen concerns from U.S. stakeholders have arisen about how these issues detrimentally affect American companies and workers. Steve Swanson, CEO of Swanson Group and chairman of the U.S. Lumber Coalition, has condemned the latest subsidy program, characterizing it as a direct assault on U.S. trade policies and the livelihoods of American lumber workers.

Swanson stated, "This round of subsidies represents not only Canada's aggression toward the enforcement of U.S. trade laws but also places U.S. lumber companies at an increased threat. The stability of lumber supply chains, which are crucial for constructing American homes, is at risk due to these unfair practices."

Responses from U.S. Lumber Coalition

The U.S. Lumber Coalition, which comprises both large and small lumber producers, is vocal in its commitment to addressing the unfair trade practices perpetrated by Canada. Coalition Executive Director, Zoltan van Heyningen, echoed similar sentiments about the crucial role of domestic production in fulfilling the needs of the U.S. housing market. He emphasized that most of the lumber used in American homes is domestically produced, and with appropriate policies, the U.S. could achieve complete self-sufficiency in this regard.

Van Heyningen stated, "The relentless unfair trade practices driven by Canadian excess lumber capacity put our producers at a greater risk. Strong enforcement of U.S. trade laws, complemented by policies instituted during the Trump Administration, is critical in safeguarding U.S. lumber producers and fortifying the market."

Moreover, he underscored that Canada has no inherent right to the U.S. market, particularly when it actively engages in practices that distort competition. He called out the political attacks against trade enforcement policies by certain organizations within the U.S., arguing that these detract from the root causes contributing to housing affordability challenges. The focus should shift towards regulatory costs, labor expenses, and overall profitability within the homebuilding sector.

The Future of U.S. Lumber Industry

The ongoing tensions and mounting pressures place the U.S. lumber industry at a crossroads. Advocates argue for the need to maximize long-term domestic production, thereby ensuring that American workers can meet the lumber demands necessary for home construction. The U.S. Lumber Coalition firmly believes that full enforcement of trade regulations will enhance the stability of supply lines, ultimately benefiting both the economy and local communities.

The coalition seeks to be the voice of the American lumber community in these crucial discussions about trade practices, encouraging all stakeholders to consider the broader implications of unfair trade rules and the potential revitalization of the U.S. lumber market.

To stay updated on these developments and more, visit the U.S. Lumber Coalition website at www.uslumbercoalition.org.