Ontario Forest Sector Faces Crisis Amid New Section 232 Tariffs and Escalating Trade War

Today (September 30, 2025), business, union, and community leaders from across Ontario voiced alarm in response to the latest escalation of the U.S.–Canada trade war. Yesterday, President Trump made the egregious proclamation that Canadian forest products represent a threat to U.S. national security, mystifying those impacted.

This decision, made under Section 232 of the Tariff Act, places an additional 10% on softwood lumber producers, who are already paying a 35% duty on exports. Market entry costs for Canadian softwood lumber producers are now approximately 45%. This decision will subject other products, such as upholstered wooden products, cabinets, and vanities, to 25% tariffs at the border.

In response, Danny Whalen, President of the Federation of Northern Ontario Municipalities (FONOM), stated, “Ontario’s strength is built on a thriving forestry sector. Every new tariff is a direct hit to our families, our workers, and our municipalities.”

Rick Dumas, President of the Northwestern Ontario Municipal Association (NOMA), said, “We have a clear growth and strategic plan for Northern Ontario, with a thriving forestry sector at its core. Today’s announcement is a significant setback and threatens the future of our communities.”

Market access and international trade are impacting forest product companies, service providers, and local businesses across the province. President of the Thunder Bay Chamber of Commerce, Charla Robinson, commented, “The hike in U.S. tariffs will harm businesses on both sides of the border, disrupt trade, and create uncertainty for workers and families who rely on these industries.”

Representatives from organized labour have been outspoken about the impacts trade disputes have on their members and workers across the country and the need to find a resolution with Canada’s largest trading partner. “Our workers are counting on federal and provincial governments to stabilize the sector while finding a solution to ensure market access,” said Jason Laco with United Steelworkers Local 1, 2010 Thunder Bay – Kapuskasing.

Stephen Boon, Northern Area Director at Unifor, stated, “We need a settlement with the United States that is fair and reasonable so that Canadian producers and forestry workers can get back to producing the lumber and wood products that are needed.”

Ian Dunn, President & CEO of the Ontario Forest Industries Association, concluded by saying, “Placing additional tariffs on Ontario’s forest sector under the false flag of national security is a disturbing abuse of Presidential power that will come at the expense of American businesses and consumers. We look forward to discussions with Premier Doug Ford to protect Ontario jobs, develop new markets, and pursue all legal avenues to defend the sector.”

Source: Ontario Forest Industries Association

 

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