THUNDER BAY -- The union that represents thousands of Canadian forest industry workers is warning that new American softwood lumber tariffs pose a risk to as many as 25,000 jobs in this country, and wants the federal government to take steps to cushion the blow.
But a spokesperson for Resolute Forest Products, which has lumber operations in Thunder Bay and Ignace, describes the U.S. government's proposal as "a shot across the bow," and insists that it is not merited.
Seth Kursman, a company vice-president, told tbnewswatch.com that lumber from Ontario and Quebec is not subsidized, and the company believes its products should have free, unencumbered access to the U.S. marketplace.
Kursman said "the politics of managed softwood lumber trade only serves to benefit large timber barons in the U.S.," while adversely impacting Canadian manufacturers, U.S. consumers and millions of Americans who work in the housing sector.
The Resolute spokesperson said the federal, Ontario and Quebec governments "should not be easily intimidated...certainly should not capitulate" to the Trump administration on the tariff issue.
He added that Canada needs to be "sophisticated in how we assess the political dynamic south of the border. Strength respects strength, and President Donald Trump does not respect weakness. We all know that."
Unifor national president Jerry Dias, in a statement, called on the federal government to "move swiftly" to curb irreversible damage to the industry.
Dias said Ottawa should implement loan guarantees for Canadian mills, and provide assistance for affected communities.
He pointed out that while international trade tribunals have previously over-ruled American duties on Canadian lumber, it can take years for appeals to be resolved.
Unifor said that in addition to the already-announced plan to impose countervailing duties averaging about 20 per cent, the Americans will announce a second round of duties in June, leading to a potential reduction of 50 per cent of Canadian lumber exports to the U.S.
According to the Forest Products Association of Canada, the preliminary countervailing duties announced by the U.S. Commerce Department on Tuesday vary from 24 per cent for B.C.-based West Fraser Timber to 3 per cent for JD Irving based in the Maritimes. The preliminary duty for Resolute is about 13 per cent.
Kursman confirmed that approximately 50 per cent of Resolute's lumber output is currently sent south of the border.
Resolute lumber operations in northwestern Ontario directly employ about 275 people.
Both Thunder Bay-area members of parliament say the Trudeau government will "stand up" for the forest industry and its workers. In a joint statement, Liberal MPs Patty Hajdu and Don Rusnak called the U.S. measures baseless and unfounded.
They said they believe a negotiated settlement in the best interests of both countries still remains possible, but added that Ottawa is already taking steps to support the industry, including looking into new market opportunities for Canadian wood in China and Europe.
