THUNDER BAY — The region's municipal association is raising the alarm as U.S. softwood lumber tariffs are set to more than double at in July, "a significant threat to the economy and well-being of communities across Northwestern Ontario."
The forest sector supports thousands of jobs across the region in communities like Kenora, Dryden, Fort Frances, Atikokan, Ignace, Greenstone, and Thunder Bay. For many municipalities, forestry is not just an industry, it's “the backbone of our economy,” said Rick Dumas, president of the Northwestern Ontario Municipal Association.
“This really could be a huge impact specifically to Northwestern and Northern Ontario,” said Dumas, “but for that matter, all of Canada in regards to the lumber sector.”
On April 4, 2025, the U.S. Department of Commerce announced its intention to impose a combined countervailing and anti-dumping duty rate of 34.45 per cent, up from 14.5 per cent, on Canadian softwood lumber. This proposed rate is expected to take effect as early as July, raising concern in forestry-reliant communities across Northwestern Ontario.
With the proposed tariffs about to take effect, Dumas called on all levels of government to act with urgency.
“We just got to continue to make sure that we’re lobbying on behalf of our communities, and bring the voice of the North, specifically the Northwest, so the government understands clearly that this will have devastating impacts if we continue to see these tariffs applied.”
“Let’s get the deal on the table for the end of July. NOMA is always there in support of the communities it represents. We’re hopefully all speaking with one voice, making sure we protect our local economies.”
“With the 14.5 per cent this year and anticipated going up as high as 34 per cent. Can you imagine a 34 per cent tariff on our lumber?” he said. “That will devastate a lot of those companies.”
Dumas emphasized, the impacts would extend far beyond the mills and forestry operations themselves, especially in small towns that depend almost entirely on the industry.
“If the tariffs are impacting those single-industry towns, the sawmills, the mills, it’s a devastating blow to the economy,” said Dumas. “It slowly trickles down. Before you know it, you start seeing storefronts close up, fewer jobs in the service sector, fewer jobs in everything. The economy within that whole region starts to collapse.”
“It’s really hard to work with a moving target,” said Dumas. “Hopefully there’s some headway being made over the next 30 days. I think the agreement between the two (governments) was to try to get this done by late July and have an agreement on the table so that both Canadian and American companies can go forward without these huge impactful tariffs and potential job losses.”
Dumas acknowledged the efforts being made by Prime Minister Carney to engage with U.S. counterparts, but said the situation demands urgent and consistent focus.
“I think Prime Minister Carney’s doing an excellent job in regards to working with our neighbouring government, but as we all know, that changes from day to day, from shift to shift, from midnight to morning,” he said. “He’s playing with a moving target every given day.”
He added that the softwood lumber issue needs to be included in a broader national discussion on Canada-U.S. trade.
“We want to continue to work with the American government and through Prime Minister Carney and, of course, Premier Ford. We want to bring those issues forward, highlighting not just aluminum and metals, or milk and eggs and oil. We need to talk about everything that’s impacting all of Canada, and one of them, of course, is the lumber dispute.”
Dumas was also clear in his response to U.S. political voices suggesting Canadian resources are unnecessary.
“Trump says he doesn’t need our resources, but he definitely needs them,” Dumas said. “And we want to continue to work with the American government to make sure that we’re getting a fair and equitable deal so that our workers are being compensated fairly, our communities are stable, and our Ontario and Canadian economies are strong and vibrant.”
Dumas traces the roots of the current dispute back to 2016, when the Softwood Lumber Agreement expired, opening the door to U.S. anti-dumping duties, triggering years of instability for Canadian lumber producers.
“Canada and the U.S. have been disputing over the lumber trade since the late 1700s,” Dumas explained. “We have somewhat of an agreement in place with the 14 per cent, but it's still, it has been, last updated in 2016.”
Since the agreement ended, the cumulative cost of these tariffs to Canadian producers has surpassed $10 billion CAD, according to NOMA. Dumas warned that the financial pressure has already stifled investment, stalled innovation, and put the long-term health of the industry in jeopardy.