A new 10% tariff imposed by U.S. President Donald Trump on timber imports this autumn has led to the suspension of shipments from New Brunswick by at least one mill in Maine, causing ripples in the province’s forestry sector. Woodland Pulp LLC ceased purchasing New Brunswick timber as of October 14 due to the tariff on softwood and specific hardwood timber. Scott Beal, a spokesperson for the company, acknowledged the increased costs incurred and the ongoing efforts to secure fiber at the most competitive prices.
Beal mentioned that the company had already reduced its wood purchases in recent months due to a decline in the global pulp market. The current market conditions, along with the impact of the tariffs, led to a 60-day pause in receiving wood, in addition to a planned 26-day operational shutdown at its Baileyville, Maine facility, resulting in the layoff of approximately 140 workers.
Despite market challenges being the primary reason for the operational halt, Beal emphasized that the tariffs exacerbated the situation, noting that up to 30% of the wood processed by the company until October originated from New Brunswick. He expressed uncertainty about the long-term implications of the tariffs once operations resume.
Karl Von Waldow, who had built part of his business around supplying timber to Woodland Pulp, stated that the demand decline drastically affected his operations, leading to a significant reduction in weekly truckloads transported across the border. The impact extended to the employment of several individuals dedicated to wood transportation, with some being laid off and others reassigned within the business.
Redirecting wood to other mills in New Brunswick was deemed unfeasible due to low prices and restricted quotas, further complicating the situation for producers and workers in the region. Kim Jensen, the manager of the Carleton-Victoria Forest Products Marketing Board, highlighted the financial repercussions for producers in western New Brunswick, noting a substantial decrease in sales to Woodland Pulp even before the latest tariff. The loss in revenue poses challenges for producers reliant on timber sales, necessitating strategic pivots to navigate the economic downturn.
Prime Minister Mark Carney’s announcement of a $1.25 billion support package for Canada’s softwood industry in August offers a potential lifeline, yet the timeline for accessing this aid remains uncertain, leaving industry stakeholders in a state of flux.