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Most plywood and kiln-dried boule shipments were destined for commercial construction.
Greece, Germany, France and Italy while plywood for the regional Lower Canadian export earnings can affect mill utilisation,
market was exported to Gambia, Burkina Faso, Benin and Togo. procurement of timber and investment decisions across
Markets in Asia (56% of the total), Europe (22%) and Africa producing regions. For US buyers, reduced values may provide
(14%) continued to be the major destination for wood products. cheaper material, but tariff uncertainty complicates purchasing,
inventory and contract planning.

Canadian lumber exports to US fall 13% The figures also underline Canada’s continued dependence
Canadian lumber exports to the US fell 13 percent year-on- on the American market for forest-products sales. Supply
year to 11.8 million cubic metres in January-June 2026, while chains across the border include timber producers, sawmills,
revenue dropped 28 percent to $2.1 billion. panel plants, wholesalers and building-material distributors.
The collapse of bilateral tariff talks adds further uncertainty New restrictions or retaliatory measures could therefore
for the integrated North American forest-products market, as affect companies on both sides, even when the immediate
reported by shev.io. customs burden falls on the exporter or importer.
Canadian lumber exports to the US fell 13 percent year- US-Canada tariff negotiations collapsed after the two
on-year to 11.8 million cubic metres in January-June 2026, governments gave conflicting accounts of the breakdown.

according to Lesprom Analytics. US Trade Representative Jamieson Greer said Canada left
Export value declined more sharply, dropping 28 percent the talks and rejected a proposed agreement.
to $2.1 billion, while the average export price fell 18 percent Prime Minister Mark Carney said US negotiators introduced
to $175 per cubic metre. new conditions that Canada considered unfair and harmful
The figures show that Canadian suppliers faced pressure to its sovereignty.
from both weaker shipment volumes and lower unit returns The US subsequently imposed 50 percent tariffs on $20
during the first half of the year. billion of Canadian goods, equivalent to about five percent

In the same period of 2025, Canada shipped about 13.6 of Canada’s exports to the US.
million cubic metres of lumber to the US market. Those Canada plans dollar-for-dollar countertariffs on US steel,
exports generated approximately $2.9 billion at an average dairy products and appliances on 8 September, Carney said.
price of about $213 per cubic metre. The dispute follows earlier US sectoral tariffs of as much as
The year-on-year comparison indicates that declining 50 percent on automobiles, steel, aluminium and forestry
prices accounted for a substantial share of the revenue loss, products, as well as Canadian retaliation.
increasing pressure on producers, mills and distributors whose The Wall Street Journal reported that negotiators had been
operations are closely tied to US demand. close to reducing US steel and aluminium tariffs to 25 percent from
Canadian oriented strand board exports also weakened. 50 percent and automotive tariffs to 15 percent from 25 percent.

OSB shipments to the US fell 14 percent year on year to Disputes over downstream aluminium tariffs and steel
2.5 million cubic metres in January-June 2026. Export value import quotas disrupted the prospective agreement, according
decreased 27 percent to $695 million, and the average export to people familiar with the talks.
price declined 16 percent to $283 per cubic metre, Lesprom With annual bilateral trade approaching $900 billion, the
Analytics reported. failure leaves Canadian forest-products exporters exposed to
The parallel fall in lumber and OSB trade matters because further policy changes while falling prices are already reducing
the two products serve major segments of US residential and revenue faster than volumes.