BC Lumber Could See US Tariffs of Over 50 Percent: Forests Minister

A stack of lumber and sawdust piles are seen at Teal-Jones Group sawmill in Surrey, B.C., on May 30, 2021. The Canadian Press/Darryl Dyck

B.C. Minister of Forests Ravi Parmar said the province’s softwood lumber exports to the United States could soon see duties of more than 50 percent, if Canada’s southern neighbor follows through with new tariffs in March.

Parmar made the comments during a press conference in Sacramento, California.

The minister has been there trying to shore up support for B.C. exports, and win over officials to try and convince President Donald Trump not to follow through with tariffs.

Trump said he would be putting 25 percent tariffs on exports from Canada and Mexico unless the countries strengthened their borders and stopped allowing illegal drugs and immigrants to cross into the United States.

Those tariffs were expected to go into effect at the beginning of February. However, after coming to an agreement with Prime Minister Justin Trudeau, Trump paused the tariffs until March 4. The president is also reviewing existing trade agreements and may impose additional tariffs.

B.C. softwood lumber already has about 14 percent duties on it due to another dispute with the United States.

Parmar said that number is expected to increase later this year. He said that tariffs on top of the duties would hurt the B.C. lumber industry.

“We are predicting with a Trump tariff and increased duties, we could be dealing with a 50 to 55 percent tariff.”

He said California and B.C. have always had a good relationship, and that the province could help the state, and other U.S. states, rebuild after recent disasters like the LA fires and hurricanes in the East Cost.

“Here in California, the wildfires have lead to almost 20,000 structures being decimated,” he said. “There is a role that British Columbia can play in helping not only fight those fires but also rebuild their communities.”

He also noted that California would be hosting FIFA and the Olympics in the coming years, and Canadian materials could help the state prepare.

Parmar has been meeting with lawmakers and business leaders, Democrats and Republicans, he said during the conference.

“I think at the end of the day, Americans don’t want a trade war,” he said. “Canada and the United States, we should be working together. We’ve been there for each other in challenging times.”

His visit to the United States took place at the same time that B.C. Premier David Eby was visiting Washington, D.C., along with other premiers to gain support for Canada’s efforts to have the tariffs quashed.

Diversification Strategy

Parmar said the B.C. lumber industry needed to diversify.

“It’s my expectation that industry should diversify if they want to be able to strengthen the economy and protect workers.”

He cited several B.C. projects that were using locally grown lumber.

“I’ve also been starting some conversations with counterparts in other provinces to find ways to ensure that when they’re looking at building infrastructure that they are using B.C. wood.”

“We also need to diversify. We’ve done a considerable amount of work over the course of the last number of years toward bringing our diversification strategy.”

Part of that work was to build relationships with countries like Japan and Korea, according to Parmar.

“We need to take the work that we’ve done in Japan and Korea and India and China and expand those to other markets.”

“British Columbia from an entire goods perspective is the least impacted province because of the work that we’ve done over the course of the last number of years. But I think there is a lot more work we can do.”