U.S. Lumber Coalition: Canada's New Softwood Lumber Subsidies Exceed C$2 Billion - Solely to Prop Up Canada's Massive and Harmful Excess Lumber Exports

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The U.S. Lumber Coalition

Apr 02, 2026, 12:41 ET

WASHINGTON, April 2, 2026 /PRNewswire/ -- Canadian federal and provincial governments have announced over C$2.1 billion worth of new taxpayer-funded subsidies for the Canadian forestry sector in the last seven months in response to the enforcement of U.S. antidumping and countervailing laws and imposition of President Trump's Section 232 tariff measures.  

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"Responding to U.S. trade law enforcement by doubling down on Canada's unfair trade practices is both reprehensible and counterproductive," stated Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition.  "The continuation of dumping practices supported and sustained by growing Canadian taxpayer-funded subsidies for the softwood lumber industry will only result in higher antidumping and countervailing duties in the future, as the ongoing trade case captures today's unfair trade behavior."

"As services are being cut by Prime Minister Carney and Canada's provincial governments because of budget constraints, Canadian taxpayers would do well to understand that subsidies provided to Canadian softwood lumber companies, many of whom are investing their resources in the United States, will be collected by the U.S. government in the form of antidumping and countervailing duties that end up in the U.S. Treasury," added van Heyningen. 

"The more subsidies Canada provides to its industry, the more duties will get collected at the border for the United States to spend on its priorities.  It is a cycle where Canada just keeps digging a deeper hole.  Unfortunately, Canadian subsidies to prop up Canada's massive and disruptive excess lumber capacity are also acutely detrimental to the U.S. softwood lumber industry, U.S. workers, and U.S. forestry dependent communities," continued van Heyningen.

The U.S. Lumber Coalition will continue to fight for U.S. forestry workers, communities, and companies who are harmed by Canada's continued and growing unfair trade practices.  The Coalition strongly supports President Trump's trade policy priorities, including the strong enforcement of U.S. trade laws and the President's focused and appropriate Section 232 tariff measures.  The President's commitment to these priorities has set the stage to reshape the North American softwood lumber industry in favor of the United States and achieve the President's objective of self-reliance for our softwood lumber needs.

"Canada's softwood lumber market share has been pushed to lows not seen since the 1970s.  U.S. trade law enforcement against unfairly traded Canadian imports has resulted in Canadian imports accounting for an average of 18.8 percent of the U.S. market since August 2025, down from 32 percent in 2016.  Simultaneously, imports from other foreign sources are also trending lower.  This translates to direct gains in the market for U.S. softwood lumber producers and workers, who are steadily increasing the supply of Made in USA softwood lumber here at home," stated Mr. van Heyningen.

"We must continue to explore all trade law enforcement options to finish the job of permanently replacing unfairly traded Canadian softwood lumber imports that have long decimated U.S. jobs with softwood lumber that is made in the U.S.  More U.S. lumber produced by U.S. workers to build U.S. homes is the solution to a reliable and stable supply of lumber for the United States."

About the U.S. Lumber Coalition
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The U.S. Lumber Coalition is an alliance of large and small softwood lumber producers from around the country, joined by their employees and woodland owners, working to address Canada's unfair lumber trade practices. Our goal is to serve as the voice of the American lumber community and effectively address Canada's unfair softwood lumber trade practices. The Coalition supports the full enforcement of the U.S. trade laws to allow the U.S. industry to invest and grow to its natural size without being impaired by unfairly traded imports. Continued full enforcement of the U.S. trade laws will strengthen domestic supply lines by maximizing long-term domestic production and lumber availability produced by U.S. workers to build U.S. homes. For more information, please visit the Coalition's website at www.uslumbercoalition.org.

NEW CANADIAN SOFTWOOD SUBSIDIES TRACKER

Since August 2025, Canada announced an estimated C$2.1 billion in forestry-specific subsidies.  In total, Canada has pledged to make available more than C$9.9 billion dollars to support the forestry industry.

Federal: C$1.7 billion in Forestry Subsidies and making available more than C$9.152 billion in total aid

Alberta

British Columbia: C$192.5 million for the forestry industry specifically (including 170 million estimated for stumpage deferral), and more than C$612.5 million in total

Manitoba

  • Canada-Manitoba Workforce Tariff Response: In March 2026, the GOM announced that through the Workforce Tariff Response program, it would be receiving $18.2 million over the next three years to "retrain displaced workers for high demand sectors, provide upskilling opportunities for current employees and support businesses as they adapt to new products and markets." The fund will benefit workers in industries affected by tariffs, such as steel and lumber.
    (https://www.gov.mb.ca/asset_library/en/budget2026/budget2026.pdf)

  • Tax Deferrals for Businesses Impacted by Tariffs and Wildfires: In its Budget 2026 announcement in March, the GOM stated that would be providing "targeted tax deferrals for businesses impacted by tariffs and wildfires" to "give{} businesses flexibility to manage shot-term financial pressures." (https://www.gov.mb.ca/asset_library/en/budget2026/budget2026.pdf)

Ontario: C$103 million for the forestry industry specifically

Ontario Sawmill Chip Support Program: In September 2025, the GOO announced a $10 million increase in funding for Ontario Sawmill Chip Support program to help sawmills find "new, innovative markets for their wood chips."  (https://www.northernontariobusiness.com/industry-news/forestry/ottawa-must-turn-talk-into-action-to-save-forestry-says-ontario-associate-minister-11270907)

Quebec: C$80 million for the forestry sector specifically

Saskatchewan

CONTACT: Zoltan van Heyningen
[email protected] | 202-805-9133

SOURCE The U.S. Lumber Coalition

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