Core Insights - The impact of the Trump administration's tariff policy is significantly affecting Canada's forestry industry, which is valued at 87 billion CAD (approximately 63 billion USD), leading to a contraction in the Canadian job market [1] - The imposition of a 35.19% tariff on Canadian softwood lumber in August, combined with a slowdown in the U.S. housing sector, has drastically reduced demand for Canadian lumber [2] - The share of Canadian lumber exported to the U.S. has dropped to only 10% this year, down from the historical range of 30% to 40% [1] - Lumber prices have plummeted by 25% from early August to September 11, resulting in minimal profitability for Canadian producers [1] - The Canadian forestry sector is one of the largest employment sectors in the country, providing 200,000 direct jobs, and the tariff impact could lead to significant job losses [1] Industry Impact - The U.S. housing industry, a major customer for Canadian lumber, is experiencing a downturn, exacerbated by tariffs that effectively act as a tax on builders, homebuyers, and consumers [2] - The U.S. Census Bureau reported that the seasonally adjusted number of new housing starts in August fell to the lowest level in nearly five years, influenced by rising home prices and a weak job market [2] - Interfor, the third-largest lumber producer in North America, announced a 12% production cut by year-end due to the ongoing weak market environment and economic uncertainty [2] - Canadian Prime Minister Carney announced a 1.2 billion CAD investment in the forestry sector, including 700 million CAD in loan guarantees, to address the direct pressures facing the softwood industry [2]