MNI: Canada Provides CAD1B To Lumber Mills Hit By U.S. Tariffs

Canada is providing another CAD1 billion of credit to lumber producers hurt by U.S. tariffs, nearly doubling an earlier aid package as firms warn of permanent mill closures and layoffs. The government also increased steel tariffs again to encourage domestic production.

"The United States, the world’s largest economy, is fundamentally reshaping all its trade relationships, causing major disruption and upheaval for Canadians," said a statement from Prime Minister Mark Carney's office Wednesday. (See: MNI INTERVIEW: Carney Job 1 Is Revive US Trade Talks-Foresters) 

Tighter steel measures include raising the tariff rate quota level for countries without a free trade agreement with Canada to 50% to 20% of 2024 levels. There is another CAD100 million to support work-sharing agreements for lumber and steel workers and a promise to cut railway freight fees on domestic lumber and steel shipments in half.