28 
American Journal of Transportation
American Journal of Transportation  
ajot.com
North American forestry divided
US–Canada trade conflict deepens longstanding 
divides as bordering states bear the brunt.
By Julie Gedeon, AJOT
(DIVIDED – continued on 
page 30)
North–South flow of soft-
wood lumber, pulp and other 
wood products continues to 
decline as the US–Canada 
trade dispute persists. While 
Canadian forestry representa-
tives hope to return to nego-
tiations to preserve highly 
integrated cross-border mar-
kets, their American counter-
parts favor protectionist tariffs 
with key exceptions.
Canadian softwood lumber 
currently faces a 10% Section 
232 global tariff with com-
pany-specific anti-dumping 
and countervailing duties 
ranging from just under 21% 
to 35%, for combined rates 
of 31% to 45% depending on 
the producer.
The American Loggers 
Council 
(ALC) 
supports 
tariffs as essential to safe-
guarding and growing the 
US industry. “For the past 
22 years of my involvement 
– the last 17 in Minnesota – 
I’ve seen railcar after railcar 
head south with Canadian 
lumber and go back empty,” 
Scott Dane, the council’s 
executive 
director, 
says. 
“This has to change, but we 
realize the cross-border com-
merce between New England 
states and Canada is highly 
interdependent and excep-
tions must be carved out for 
some bordering areas.”
Maine’s Governor Janet 
Mills has criticized the US 
tariffs for leading to the tem-
porary layoff of 144 workers 
at one mill which tradition-
ally received pulp from New 
Brunswick, and the canceled 
redevelopment of another 
former mill that would have 
created 125 new jobs. 
Builders in Massachu-
setts and other northern states 
have lamented the steeper 
costs of materials for hous-
ing, custom cabinetry and 
other purposes. In Ohio, 
the levies have contributed 
to record-high pricing for 
homes in metropolitan areas, 
such as Columbus.
The council maintains 
the US industry can effi-
ciently supply these markets 
in relatively little time, after 
better communication with 
builders, and additional gov-
ernment support. Dane says 
the $80 million in loan guar-
antees announced by the US 
Department of Agriculture 
in July to expand domes-
tic timber production and 
improve forest health is a start 
but insufficient. He notes the 
Canadian government’s $2.5 
billion commitment to retool 
and transform its forestry and 
softwood lumber sectors.
“The US government 
needs to invest more in its 
domestic timber industry to 
remain competitive,” Dane 
says. “Reducing import vol-
umes from Canada, Brazil 
and Europe will also help.”
Canadian softwood lumber 
entering the US over the past 12 
months has declined from 28% 
to 18%. “And there’s been no 
appreciable change in the cost 
of lumber,” Dane adds.
Derek Nighbor, president 
and CEO of the Forest Prod-
ucts Association of Canada 
(FPA), says impacts are sig-
nificant where near-border 
industries have become inte-
grated supply chains. “The 
trade war has thrown all this 
into chaos, creating losers on 
both sides,” he emphasizes. 
Homebuilders for years 
have embraced the affordable 
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