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Lumber Slips from One-Year High

Lumber prices fell below $650 per thousand board feet after reaching a near one-year high, as new U.S. tariffs on most Canadian wood-related products weighed on the market. Although Canadian softwood lumber was exempt from Washington’s new 50% tariffs, 98 other wood-product categories remained subject to the duties, deflating hopes of a lumber carve-out. Meanwhile, the Canadian government announced additional financial support for lumber producers in Western Canada to help offset tariffs and trade uncertainty. The Forest Products Association of Canada described the measures as a direct blow to the country’s forestry sector, where mills are already operating below capacity, as Canadian duties of nearly 35% on lumber forced production cuts and mill closures. Still, wildfires across Western Canada continued to threaten lumber availability, while President Donald Trump warned that wildfire-related costs could be incorporated into existing duties.

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