Facing the imminent U.S. decision to raise softwood lumber tariffs on Canadian imports from just over 7% to more than 20%, Canadian Prime Minister Mark Carney announced a C$1.2 billion support plan for the lumber industry. The move aims to mitigate the crisis stemming from decades of trade disputes, stabilize the sector, and protect jobs.
The aid package includes two key funding components: C$700 million in loan guarantees to provide immediate financial relief and ease tariff-induced pressures, and C$500 million in long-term funding to diversify export markets and boost innovation. Speaking at a lumber mill in West Kelowna, British Columbia, Carney emphasized the plan as a pivotal shift from dependence to resilience: "Together, we will write our own story, not let others dictate it to us."
A core strategy of the plan is reducing reliance on foreign markets by expanding domestic lumber consumption. Accelerating housing construction is a key focus, with a target of nearly 500,000 new homes annually over the next decade. Carney stated the initiative could double Canadian softwood lumber use in new residential projects, adding nearly 2 billion board feet, while increasing structural panel demand by nearly 1 billion square feet.
The "Build Canada Housing" initiative, launching this fall, will serve as a flagship program, leveraging local technology, labor, and timber to revitalize affordable housing. A配套的 C$50 million national training program will upskill forestry workers to support industry modernization.
Currently, Canada's lumber sector heavily depends on the U.S., which imports over 80% of its lumber from its northern neighbor, with more than 70% of softwood used in housing. To shift this dynamic, Canada is pushing for construction innovation. Carney revealed plans to provide over C$25 billion in financing to prefabricated home builders to scale production. Prefab and modular homes can cut construction time by 50%, reduce costs by 20%, and lower emissions by over 20% compared to traditional methods.
Companies like Vancouver-based Intelligent City, which integrates robotics and digital design for mass timber housing, exemplify this transformation. Carney envisions Canada leading the global prefab revolution: "Modular housing is the future, and Canada should be at the forefront." With policy backing and innovation, the lumber industry is carving a new path amid trade tensions.
