Canada Open to Limiting Softwood Lumber Exports to US to Ease Trade Dispute

In a significant development for North American trade relations, British Columbia Premier David Eby has confirmed that Canada is open to discussing export limits on softwood lumber to the United States. This move is seen as a potential solution to ongoing US-Canada trade tensions and could pave the way for a new bilateral agreement.

Speaking to Bloomberg News, Eby stated, “Lumber presents a real opportunity to reach an early agreement that benefits both sides. One longstanding demand from the American side has been quotas—fixed limits on the volume of Canadian lumber imports. For the first time, we’re seeing a willingness to have that conversation.”

Provinces Join Federal Talks on Export Quotas

Eby revealed that provincial ministers have been working with Prime Minister Mark Carney’s federal government to explore proposals “that have never been on the table before.” British Columbia, home to forestry giants like Canfor Corp. and West Fraser Timber Co., is Canada’s largest lumber-exporting province.

Goal: Stabilize US Housing Costs, Protect Canadian Jobs

A quota-based agreement would aim to stabilize building material costs in the United States—which heavily relies on Canadian softwood—and secure employment for Canadian forestry workers.

According to Statistics Canada, British Columbia and Quebec accounted for 64% of Canada’s softwood lumber exports in the past year.

US Response Still Unclear Amid Tariff Threats

It remains uncertain how receptive the US government will be. Although the Carney administration has complied with several demands from former President Donald Trump—including higher defense spending and shelving a digital services tax—Trump recently threatened a 35% tariff on various Canadian products.

Trump has also instructed the US Department of Commerce to examine whether foreign lumber imports pose a national security threat, signaling potential new tariffs on Canadian lumber.

Housing Industry Pushback

Meanwhile, US homebuilders have warned that higher tariffs would fuel inflation and add approximately $11,000 to the cost of a single-family home. Data from the National Association of Home Builders shows that Canada supplies nearly 25% of US softwood lumber needs.

With economic and political pressure mounting on both sides of the border, the possibility of a softwood lumber quota agreement could mark a turning point in US-Canada trade relations—one that balances national interests with economic necessity.