Prime Minister Carney announces new measures to transform Canada's softwood lumber industry

West Kelowna, BC, Aug. 5, 2025 /CNW/ - The global trade landscape has fundamentally changed. To meet this moment, Canada's new government is developing a comprehensive industrial strategy. It will invest in domestic production, develop Canadian expertise, support our companies to retool and reinvest, and help industries pivot to a growing Canadian market and those of new, reliable trading partners around the world.

As part of that strategy, the Prime Minister, Mark Carney, today announced a series of new measures to help the softwood lumber industry transform to remain competitive. These measures will help unlock the full potential of the industry as we scale up housing and major infrastructure construction and drive long-term economic growth, rooted in Canadian resources and innovation.

Canada's new government will:

• Provide up to $700 million in loan guarantees to address the immediate pressures facing the softwood lumber sector. This will ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation.
• Invest $500 million to supercharge product and market diversification to make the industry more competitive for the long-term. As technology changes the way we build and demand grows for softwood lumber, this will increase domestic processing and value-added production. This investment will also include initiatives that support Indigenous-led forestry business development and diversification.
• Build Canadian by prioritizing Canadian materials in construction and changing federal procurement processes to require companies contracting with the federal government to source Canadian lumber. As the government delivers on its mandate to build major infrastructure projects faster and to increase the pace of homebuilding to nearly 500,000 new homes per year over the next decade, we will ensure Canadian lumber and other Canadian materials are prioritized in that construction. Once established, Build Canada Homes will provide financing to innovative private sector home builders in Canada that use Canadian technologies and resources, like mass timber and softwood lumber.
• Diversify international markets for Canada's sustainably sourced forest products. We will launch a new initiative to diversify exports of Canadian wood products, including the reinvigoration of federal programming to expand offshore markets for sustainable, innovative, high-quality products. In fast-growing regions with rising demand for housing and other buildings, we will promote Canadian lumber as an affordable, sustainable solution.
• Provide $50 million for upskilling, reskilling, and income supports for more than 6,000 affected softwood lumber workers through the Labour Market Development Agreements. This investment builds on temporary enhancements to the Employment Insurance (EI) program and the EI Work-Sharing program. Through this investment, we will equip workers with the tools and training they need to stay competitive – helping them adapt to new technologies, strengthen their expertise, and excel in changing industries.

Canada's economy is shifting from reliance to resilience. During this time of transformation, these measures will ensure Canada's softwood lumber industry and workers are able to adapt and emerge even stronger.

Quotes
"The forest sector is a pillar of Canada's economy. 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. In the face of a changing global landscape, we are focused on what we can control – building Canada strong with Canadian expertise, using Canadian lumber."
— The Rt. Hon. Mark Carney, Prime Minister of Canada

"Canada's forestry sector is a cornerstone of our economy. It supports nearly 200,000 good jobs in both urban and rural communities and accounts for billions in contribution to Canada's GDP and exports every year. Through the actions announced today and existing supports, we are committed to protecting this key industry and the workers who power it."
— The Hon. François-Philippe Champagne, Minister of Finance and National Revenue

"Today's announcement showcases the Government of Canada's steadfast commitment to supporting the Canadian economy and the workers who keep it strong. By bolstering this key industry and ensuring resilient supply chains, we stand with the industry, its workers, and communities to keep Canada a trusted global trade partner."
— The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"The world is changing, and Canada must be ready to meet the challenges of our times. That's why the government is taking action to support the workers and industries that build Canada – day in and day out. 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."
— The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

"Canada's natural resources are not only a cornerstone of our national identity – they are the foundation of our economy. Protecting and modernizing our resource industries in the face of tariffs and global uncertainty is critical to safeguarding Canadian jobs and communities and ensuring a prosperous and strong future."
— The Hon. Tim Hodgson, Minister of Energy and Natural Resources

Quick facts

• Canada's forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous Peoples, and contributing more than $20 billion to our GDP.
• In 2024, 66% of Canada's total softwood lumber production was exported, and of that, nearly 90% was exported to the U.S.
• On July 25, 2025, the U.S. Department of Commerce doubled duties on softwood lumber products from Canada, with further increases expected later this month.
• New and innovative forest products such as engineered timber, biofuels, and forest product-based biodegradable packaging materials are helping Canada reach net-zero by 2050 and enabling more sustainable, efficient housing solutions.
• Canada's new government will double the pace of homebuilding to almost 500,000 new homes a year over the next decade. That alone will double the use of Canadian softwood lumber in residential construction – an increase of almost 2 billion board feet – and it will double demand for structural panels – an increase of almost 1 billion square feet.
• Build Canada Homes, once established, will prioritize the use of Canadian-made materials – including lumber – to accelerate housing construction while supporting Canadian workers and industries.

Associated link

• Canada's softwood lumber industry

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

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