Calling it a "hinge moment in history," Prime Minister Mark Carney says Canada is starting to shift from reliance to resilience regarding the country's trade partnership with the U.S.
Carney made his comments in West Kelowna on Tuesday (Aug. 5), while announcing a series of new measures to help the softwood lumber industry transform to remain competitive.
"Together, we're going to write our own story rather than let others dictate theirs to us," Carney told reporters following a tour of the Gorman Brothers Lumber mill.
The prime minister said that his government plans to build one Canadian economy out of 13.
"We're embarking on a series of nation-building projects. We're launching unprecedented investments in home building, and we are diversifying our trade partners. Throughout, we will build Canada strong with Canadian workers, Canadian technology, Canadian lumber, and Canadian values."
The measures include up to $700 million in loan guarantees to address the immediate pressures facing the softwood lumber sector and $500 million for product and market diversification.
Other investments include the Build Canadian initiative, which prioritizes domestic materials in construction and requires companies contracting with the federal government to source Canadian lumber. The government is also planning to diversify exports of Canadian wood products and will provide $50 million for upskilling, reskilling, and income supports for more than 6,000 affected softwood lumber workers through the Labour Market Development Agreements.
Carney said that the U.S. has been alternating between confrontation and collaboration over the past four decades concerning softwood lumber, including imposing countervailing and anti-dumping duties and then signing beneficial agreements.
"Let's be clear, Canada does not dump lumber into the United States," he added. "And we will continue to make the case that these current and proposed duties are unjustified."
Last month, the U.S. Commerce Department raised anti-dumping duties on most Canadian softwood to 20.56 per cent. Canadian producers are still waiting for a final decision on countervailing duties, expected later this summer. In April, a preliminary determination set the countervailing rate at 14.38 per cent. If finalized, that would push the total combined duty rate to 34.94 per cent.
"Canada is a vital supplier to our southern neighbour," the prime minister pointed out. "We represent around a quarter of the U.S. market, and we help keep down the cost of American homes while improving their quality."
Carney added that the disputes around softwood lumber are part of a bigger picture where American trade pressures have intensified and broadened.
The prime minister responded to a question about a letter from seven of Canada's first ministers, including Premier David Eby, asking the federal government to make the softwood lumber agreement a high priority.
"I've read the letter and had direct discussions with the premiers," Carney said. "We are working for the best deals for all our industries. Part of getting the best deal...is to build the industry, is to innovate, to develop new markets, and to be our own best customer."
Asked why his government has not retaliated against the Trump administration's increase of the general tariff rate and the doubling of tariffs on steel and aluminum, the prime minister noted that 85 per cent of the trade between Canada and the U.S. is tariff-free.
"We have always said that we will apply tariffs where they have the maximum impact in the United States and the minimum impact in Canada," he said. "We don't automatically adjust. We look at what we can do for our industry that's most effective. In some cases, that will be to remove tariffs."
Carney also pointed out that Canada is the second-largest investor in the U.S.
"That puts in context the state of the relationship," he added. "The future potential with an agreement and some, I'm not saying all of that乌鸦传媒攂ut without an agreement, there will be less by definition."
The BC Lumber Trade Council (BCLTC) issued a release on Tuesday, stating it was pleased with Carney's announcement.
"The measures are timely," BCLTC President Kurt Noquidet said. "We look forward to working with federal officials to ensure they are implemented quickly and effectively, and that they reflect the realities facing regions like British Columbia."
Canada's forest sector supports nearly 200,000 workers, including more than 11,000 Indigenous Peoples, and contributes more than $20 billion to the Gross Domestic Product.
In 2024, 66 per cent of Canada's total softwood lumber production was exported, with nearly 90 per cent going to the U.S.
