Prime Minister Mark Carney announced an additional $500 million to the Softwood Lumber Development Program, how much of an impact will this have for local workers and companies?

By Tommy Osborne

Forestry Sector

Will $500 million federal government boost be enough for struggling forestry industry?

Nov 28, 2025 | 12:49 PM

PRINCE GEORGE – Prime Minister Mark Carney announced a $500 million boost to the Softwood Lumber Development Program earlier this week, a move that gives forestry companies access to government backed loans. This is on top of $1.2 billion dollars already announced for this program in August, but more supports are coming in light of U.S. softwood lumber tariffs increasing from 35 to 45% last month, on top of already existing 50% import duties from the U.S. But will this be enough for a struggling industry?

“I think that this announcement by the Prime Minister goes a long way for those companies that need the short term loan guarantees to help them continue operations to remain solvent so our members keep working. I think it’s a good thing. However, it’s a short term solution,” said United Stell Workers Wood Council Chair Jeff Bromley.

“The intent is likely good, but you must deliver the goods. If you don’t, it becomes a liability,” said CEO of Brink Forest Products ltd. John Brink.

“The banks really don’t give any credibility to it, they say ‘well whatever.’ So that has not made anything better up to this point, and it may even be the opposite,” Brink continued.

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Brink says he encourages what Carney is doing, but he says companies need action and results now. He says companies like Brink Forest Products are under a lot of pressure, as he says his company has lost 350 jobs in the last six to eight months.

“Maybe if this federal government support doesn’t happen in terms of loan guarantees to the banks, then even those companies will no longer survive,” Brink said, speculating on forestry companies across the province and country.

Both Brink and Bromley say the root cause of the forestry industry struggles is U.S. tariffs and duties, and until a deal is made or that situation is resolved, the situation remains precarious at best.

“Anything right now is helpful to our industry. Our industry has been a certainly been really hammered in terms of the punitive US duties on our lumber products going to the United States market,” Bromley said.

“We have to learn to expand markets both within our country, which is an easy sell, but we also have to learn to diversify away from the United States market. But at the end of the day, the lack of a soft labour deal with the United States is paramount,” he continued.

Brink says companies are really feeling the stress, and it’s a heavy cost.

“we paid 80 billion, I mean 80 billion, eight-zero billion in duties,” Brink emphasized.

“If you have a car load of lumber, and there’s a number of them sitting here (at Brink Forest Products) that is worth maybe $60,000, close to $30,000 of that is duties. That cannot be done,” he continued.

As far as the additional $500 million from the federal government is concerned, Bromley says if it helps keep workers employed, he is fully in favour of it. However, he thinks the government should do more to support workers.

“The easiest lever for the federal government to to pull is the EI (Employment Insurance) lever. They need to make it easier for workers that are laid off to access that, but they also need to look at the amounts,” Bromley said.

Also part of Carney’s announcement was more supports for the steel industry, another industry hit hard by the U.S. trade war.

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