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Minister says Canadian forestry crisis goes beyond Trump tariffs

A task-force report says homegrown problems are driving the crisis as 40 curtailments and 1,000 temporary job losses hit the sector.

  • On Wednesday, Tim Hodgson unveiled $130 million in funding for 56 projects across Canada, seeking to transform the forestry sector into a modern, thriving industry.
  • Beyond Trump-era tariffs, Hodgson reported that the 'most significant barriers to competitiveness are homegrown,' including unstable fibre access and weak domestic demand threatening the industry.
  • The sector faces an 'existential crisis,' with over a dozen sawmills employing 2,000 workers closing since August; disruptions also triggered 40 curtailments and 1,000 temporary job losses.
  • Hodgson, meeting forest ministers in Langford, described the industry as reaching a 'turning point,' emphasizing that Canada must modernize rather than simply extend life support.
  • This new funding supplements $2 billion in federal support announced since August 2025, though the report warns the sector faces an 'existential risk' from American duties without immediate action.
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Canada pumps money into forestry as task force warns of ‘existential risk’

The Canadian government is continuing to pour money into the forestry sector as federal and provincial ministers meet this week in B.C. and try to stem the spiral of an industry in crisis. Federal Energy and Natural Resources Minister Tim Hodgson opened the Council of Canadian Forest Ministers in Langford on Wednesday (June 3) by announcing an additional $130 million and by promising an “action plan” to be unveiled by the end of the week. This a…

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St Catharines Standard broke the news in Welland, Canada on Wednesday, June 3, 2026.
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