OTTAWA — Prime Minister Mark Carney has announced a sweeping $1.25 billion strategy to overhaul Canada’s softwood lumber sector, aiming to future-proof the industry amid escalating U.S. tariffs and shifting global markets.
Speaking from West Kelowna, B.C., Carney called the initiative a core pillar of his government’s broader industrial strategy to shift Canada’s economy “from reliance to resilience.”
“As we shift from reliance to resilience, Canada’s new government will ensure the industry can transform to seize new opportunities in Canadian and international markets,” said Carney.
We’re building Canada strong — with Canadian expertise, using Canadian lumber. pic.twitter.com/q8ADSv5Mpm
— Mark Carney (@MarkJCarney) August 5, 2025
What’s in the Plan?
The new softwood lumber strategy includes five key measures:
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$700 million in loan guarantees to help companies restructure and remain operational during this industry-wide transition.
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$500 million investment to boost product and market diversification — with a special focus on domestic processing and Indigenous-led forestry businesses.
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New procurement rules that prioritize Canadian lumber for federal housing and infrastructure projects, including the Build Canada Homes program.
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Expanded international marketing to position Canadian lumber as a sustainable, affordable option in global housing markets.
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$50 million in training and transition support for over 6,000 workers through Employment Insurance and Labour Market Development Agreements.
“Canada’s forestry sector is a cornerstone of our economy,” said Finance Minister François-Philippe Champagne. “We are committed to protecting this key industry and the workers who power it.”
Why It Matters
This comes just two weeks after the U.S. doubled tariffs on Canadian softwood lumber, a sector that supports nearly 200,000 workers and contributed over $20 billion to Canada’s GDP last year. The federal government projects its housing strategy will double the use of Canadian lumber — increasing demand by nearly 2 billion board feet annually.
The plan also accelerates Canada’s push toward net-zero by 2050, with added emphasis on mass timber, biofuels, and sustainable building products.
With domestic and international demand poised to rise, Canada is placing a long-term bet on its own natural resource expertise — and on homegrown supply chains.
“By strengthening what we have here at home and standing up for Canada, we’re making sure our country stays strong, competitive, and ready to lead,” said Minister of Jobs and Families Patty Hajdu.
📍 Canada Watch is GTA Weekly’s Monday editorial on major national developments from a local perspective. Follow us @GTAWeeklyNews for more. #GTAWeekly#CanadaWatch #GTAToday
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