en.Wedoany.com Reported - Canada's federal and provincial governments have invested more than $3 billion in new subsidies over the past year to sustain the country's massive excess lumber capacity and output. Canadian officials say these new subsidies are designed to offset the impact of U.S. anti-dumping duties, countervailing duties, and Section 232 tariffs imposed by President Trump to maintain and promote U.S. softwood lumber production.
Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition, stated that what Canada needs to do is not negotiate, but rather dismantle its massive excess lumber capacity, stop dumping surplus products into the U.S. market to the detriment of American mills and workers, and cease providing billions of dollars in new subsidies annually. He noted that the President's trade enforcement measures are working—shipments to the U.S. from Canada and non-Canadian sources have declined, U.S. lumber production and capacity have been preserved and even increased despite a weak housing market, and new domestic investments are being made with thousands of jobs created.
Steve Swanson, CEO and Executive Chairman of the Swanson Group and Chairman of the U.S. Lumber Coalition, said it is outrageous that Canadian producers and government officials, after receiving billions of dollars in bailouts to sustain excess capacity, are now asking the U.S. to abandon trade enforcement measures and open its market. Swanson praised President Trump for his strong stance in protecting American workers facing unfair trade practices from Canada, and stated that the U.S. lumber industry has responded to the President's trade policies by investing in expanded domestic production and creating thousands of jobs—all during a period of persistently low housing starts and weak lumber demand. Since 2016, the U.S. lumber industry has added more than 8 billion board feet of new lumber capacity, cumulatively produced an additional 37 billion board feet, and continues to expand production of "Made in America" lumber.
Strong trade enforcement has brought U.S. lumber supply self-sufficiency to levels not seen since the 1970s, with U.S. sawmills now supplying nearly 75% of the American market and climbing. Meanwhile, Canadian lumber capacity has fallen by 4.3 billion board feet, and Canadian producers' U.S. market share has dropped from over 30% in 2016 to below 19% this year. Non-Canadian imports are also on the decline. Van Heyningen stated that as Canada continues to double down on unfair trade practices, he urges the President to intensify his "America First" trade enforcement agenda.
Since President Trump imposed Section 232 tariffs last September, the domestic industry has made even greater progress, with multiple companies announcing expansion or investment plans.
In September 2025, Hood Industries of Mississippi announced plans to build a greenfield sawmill in Waynesboro, with an estimated cost of $260 million and an initial annual capacity of 300 million board feet, an 88% increase over the company's existing capacity. Construction is underway, with completion expected in February 2027.
In January 2026, Pleasant River Lumber of Maine added a second shift at its Enfield facility, increasing output by 50%. The company plans to invest $15 million in capital expenditure projects over the next five years and add jobs to meet production targets. Jason Brochu, co-owner of the mill, said what they are seeing now is the investment benefit of trade protection, which will make the mill stronger.
In January 2026, Winwood Forestry Products of Mississippi announced a $2 million investment in Adams County to expand sawmill operations and increase capacity, expected to create 15 jobs and retain 30 existing positions.
In April 2026, New South Lumber Company of Alabama, a subsidiary of Canadian producer Canfor, announced a $10.5 million investment to expand operations at its Mobile County facility, a move that will allow the company to retain more than 250 jobs.
In April 2026, Davis Timber Company of Louisiana announced a $1.9 million investment to expand its Beauregard Parish operations with new production capacity, expected to create 12 direct jobs and 9 indirect jobs while retaining 11 existing positions.
In May 2026, Canadian company West Fraser announced a $70.25 million investment to expand its sawmill in Escambia County, Florida, creating 30 new jobs.
In June 2026, Irving Forest Products, which produces softwood lumber in both Canada and the U.S., announced a $42 million investment to expand its sawmill operations in Maine to increase capacity and add 80 jobs. The facility is reportedly expanding from 68,500 square feet to 136,500 square feet, nearly doubling in size.
In June 2026, C&C Forest Products of Louisiana announced an investment of more than $21 million to rebuild its Coushatta sawmill following a 2025 fire, expected to create 77 new direct jobs with an average annual salary of $65,260—34% higher than the average wage in Red River Parish—while retaining 27 existing positions. Louisiana Economic Development estimates the project will also generate 256 new indirect jobs, for a total of 333 potential new employment opportunities.
Stimson Lumber of Oregon will complete construction of a new sawmill at its Forest Grove site in October 2026. Chairman and owner Andrew Miller stated that this $90 million investment would not have been possible without tariffs on Canadian lumber, and that strong trade enforcement provided Stimson with the market certainty needed to expand capacity.
