Since the second inauguration of U.S. President Donald Trump in January, many of the world’s once stable and long-standing economic relationships have been put on shaky footing due in large part to the Trump administrations tariff policies.
Tariffs put in place by the American government on Canada have already had an adverse effect on industries like energy and auto-manufacturing, and one of Cochrane’s largest and most prominent corporations is expecting that trend to continue.
West Fraser Timber, which does business all over Canada and the United States, told the Cochrane Eagle that it expects the tariffs to have an impact on production in Canada, but the true extent is yet to be determined.
“All Canadian imports of softwood lumber products to the US have been subject to countervailing and antidumping duties since 2017,” said West Fraser’s senior vice-president of corporate services James Gorman. “These duty rates are scheduled to significantly increase this fall. The extent to which these higher duty rates impact production in Canada will, in large part, be determined by the market.”
Gorman added that lumber products are currently not subject to additional U.S. tariffs because they’re considered United States–Mexico–Canada Agreement (USMCA) compliant. However, Gorman added that the Trump administration has singled out lumber for a “Section 232 Review” to determine whether lumber imports pose a threat to US national security.
According to Gorman, if the Trump administration determines there is a threat posed to the country’s national security, the President can apply a tariff or other measures to address that concern. Gorman said that this is the same mechanism employed by the US to impose a tariff on Canadian imports of steel and aluminum.
“West Fraser is working closely with all levels of government in Canada to find lasting solutions to Canada-US trade matters,” Gorman said.
