In partnership with
Welcome to the never-ending saga of “Canada vs. America: Who’s Subsidizing Who?”—a saga that has lumberjacks scratching their heads and politicians shouting across the border like your uncle at Thanksgiving. The star of today's political sitcom? Softwood lumber—the spruce, pine, and fir that build your cabin, your deck, and probably your neighbor’s deck too.
Before we begin, let’s talk about our sponsor:
Looking for unbiased, fact-based news? Join 1440 today.
Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.
First, some cold, hard numbers to set the scene: Canada’s softwood lumber industry is huge—valued at a cool $10 billion and directly employing about 28,000 people, roughly 15% of the forest sector workforce. It’s a lifeline for many rural and Indigenous communities, supporting jobs that stretch from logging to sawmilling. Nearly 70% of this lumber heads overseas, with over half of Canada’s softwood lumber exports shipped straight to the U.S. That’s right—the U.S. imports about 50% of Canada’s production, which makes Canadians the biggest lumber supplier next door.
But here’s where it gets sticky. The U.S. government believes Canada’s system of government-owned forests and administratively set timber prices (which aren’t set by free-market auctions as they are south of the border) is basically giving Canadian lumber unfair advantages. Translation: the U.S. slaps hefty tariffs on Canadian wood — right now adding up to roughly 20.5% anti-dumping duties and combined tariffs nearing 34.5% as of summer 2025. That’s like ordering lumber for your home and suddenly paying an extra few grand because Uncle Sam frowns at Canadian pricing.
Canada, on the other hand, looks at the growing tariff bar tab and says, “Nope, our way is legit.” After all, these forests are public assets, managed provincially, not part of a sneaky subsidy scheme. Ottawa argues it’s not a subsidy under trade law and has repeatedly challenged U.S. tariffs in international courts. The problem? The dispute drags out like a bad family feud with each side playing legal hardball while small towns worry about shedding jobs and closing mills.
Why doesn’t Canada just put softwood lumber on the trade negotiating table? Because it’s not just boards and beams; it’s the backbone of jobs for thousands of Canadians. Reckless trade brinkmanship could turn cozy forest communities into ghost towns. Instead, the government has stuck to legal challenges and careful diplomacy—trying to avoid letting this dispute turn into an all-out tariff war that would blow back on both economies and homeowners needing affordable lumber.
So, as the tariff saga lumberjack-dances on, with tariffs tripling and doubling, and political speeches flying as fast as sawdust, Canadians are left wondering if their next deck will come with a side of international politics.
Want to keep getting the witty, no-BS takes on this and other Canadian-American kerfuffles? Subscribe to CanAmericanews.com and get the story delivered sharper than a freshly cut plank—because someone’s got to make sense of all this lumber drama, and it might as well be us.
Subscribe now. Your future deck—and your sanity—will thank you.