Federal Industry Minister Mélanie Joly assured a business group in Fredericton that financial aid for Canada’s softwood lumber industry is on the horizon. The support package will involve funding facilitated through banks but guaranteed by the Business Development Bank of Canada. Despite Prime Minister Mark Carney’s pledge of $1.25 billion for the industry in August, the disbursement of these funds is pending.
While the exact amount earmarked for the New Brunswick industry was not disclosed, Joly emphasized that it would be determined based on necessity. She highlighted that the assistance would come in various forms, including operational support to alleviate financial strain caused by unjustifiable tariffs and capital expenditure funding to encourage ongoing investments.
The announcement of this financial aid follows U.S. President Donald Trump’s imposition of new tariffs on softwood lumber on September 30. Trump introduced an additional 10% tariff on softwood lumber, supplementing the existing 35% tariff, along with a 25% duty on specific finished wood products like cabinets and upholstered furniture, which took effect recently. Furthermore, slated increases in duties on upholstered furniture and cabinets are expected on January 1.
In addition to the financial support, Joly revealed that the federal government is developing a buy Canadian initiative to promote the use of New Brunswick’s softwood in domestic construction projects and major undertakings.