Ontario Renews Demand for U.S. to End Softwood Lumber Duties

Ministers call U.S. decision to raise tariffs unjust and harmful to workers, housing

TORONTO – The Ontario government is renewing its demand for the United States to lift tariffs on Canadian softwood lumber, following a recent decision by the U.S. Department of Commerce to further increase duties on lumber exports from Canada.

In a joint statement released August 8, Associate Minister of Forestry and Forest Products Kevin Holland, Minister of Natural Resources Mike Harris, and Minister of Economic Development Vic Fedeli called the continued tariffs “an unjust burden” on Canadian exporters and a policy that hurts families and workers on both sides of the border.

“This decision ignores the real burdens duties impose: reducing productivity, disrupting industry, driving up building costs, and making housing less affordable for American families,” the statement said.

The U.S. has no closer trading partner than Canada, yet today, they chose to further increase duties on Canadian softwood lumber.

This decision hurts good jobs, families, and industry on both sides of the border. These unfair duties raise costs and weaken our collective… pic.twitter.com/HcxSHm33Ry

— Victor Fedeli (@VictorFedeli) August 8, 2025

Ontario Reiterates Call for Free and Fair Trade

Ontario ministers had previously urged the U.S. government to uphold its commitments to free trade by eliminating the duties entirely, citing the importance of strong cross-border economic ties, especially during a time of global instability and rising housing costs.

Despite those calls, the latest move by the U.S. Commerce Department signals a hardening stance, prompting Ontario’s ministers to respond swiftly.

“We remain firm in our position that continued duties are an unjust burden… and should be lifted entirely,” the ministers said, emphasizing that the decision hurts not just Canadian sawmills and forestry communities, but also contributes to rising home construction costs and inflationary pressures in the U.S.

Impact on Ontario’s Forest Sector and North American Housing Costs

The softwood lumber dispute has been a longstanding source of trade friction between Canada and the United States. In Ontario, the forestry sector supports more than 128,000 jobs and generates billions in GDP each year.

Industry groups and government officials say that U.S. tariffs unfairly target Canadian producers, despite multiple World Trade Organization (WTO) and NAFTA-era rulings that found Canada’s softwood lumber industry operates within global trade norms.

The renewed duties are also expected to increase material costs in the U.S. housing market at a time when affordability is already a significant issue.

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