Developer Concerned $1.2B Lumber Support Plan ‘Could Be Read as Another Subsidy’
CANADA, AUG 7 – The federal government’s $1.2 billion package includes $700 million in loan guarantees and $500 million for industry modernization to counteract rising U.S. tariffs on Canadian lumber.
- Prime Minister Mark Carney announced a $1.2 billion support package on August 11, 2025, for Canada's softwood lumber industry facing U.S. tariffs.
- The announcement responded to increased U.S. anti-dumping duties up to 20.56 percent that have pressured the industry for years.
- The government’s support plan provides $700 million in loan guarantees to assist producers, allocates $500 million toward innovation and processing improvements, and implements policies to give preference to Canadian lumber in federal infrastructure and housing projects.
- Danny Whalen of FONOM emphasized that forestry plays a crucial role in sustaining employment, underpinning local economies, and supporting essential infrastructure throughout communities in northeastern Ontario.
- Officials expect the support to improve competitiveness and domestic production but acknowledge concerns that funds could be seen as subsidies, increasing export uncertainty.
11 Articles
11 Articles
Developer concerned $1.2B lumber support plan ‘could be read as another subsidy’
Prime Minister Mark Carney’s decision to offer over a billion dollars for Canada’s softwood lumber industry has a developer concerned funds will be perceived as subsidies causing uncertainty for exporters relying on business with the United States.

Politicians at all levels praise new billion-dollar softwood lumber funding package
NORTHWESTERN ONTARIO — Regional representatives from all levels of government are applauding a recently-announced federal stimulus package for the softwood lumber industry and agree that collaboration is key to the sector's survival and growth.
Federal government is recognizing northwest Ontario's softwood lumber sector, says Minister Patty Hajdu
The federal government is providing $1.2 billion to support Canada’s ailing softwood lumber industry, amidst an ongoing trade war with the United States. Northern Ontario accounts for more than 50 percent of Canada's forestry, logging and support activity employment.
On Tuesday (August 5), Canadian Prime Minister Carney announced that the federal government will allocate 1.2 billion to support the softwood lumber industry, of which 700 million will be used to guarantee loans to forestry companies, 500 million will be used for product development and market diversification, and 50 million will be allocated for "employment transformation support."
Future projects to ‘prioritize’ Canadian lumber, PM says - Ontario Construction News
Wolfgang Depner, Canadian Press The federal government is setting up a safety net of loans, product-development grants and market diversification plans for Canada’s softwood lumber industry in an effort to shield it from the worst of American duties and fees. Prime Minister Mark Carney announced the plan Tuesday, promising $700 million in loan guarantees […] The post Future projects to ‘prioritize’ Canadian lumber, PM says appeared first on Onta…
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