Ottawa provides $20M for B.C.'s forest sector amid softwood duties, trade war

A wood mill is pictured along the Stave River in Maple Ridge, B.C., April 25, 2019. THE CANADIAN PRESS/Jonathan Hayward

The federal government is providing about $20 million in funding to support British Columbia’s forestry sector, part of Ottawa’s effort to bolster the economy amid the Canada-U. S. trade war.

Energy Minister Jonathan Wilkinson says it’s more important than ever to support the sector, which is subject to American duties on softwood lumber and now faces the additional threat of steep tariffs from U.S. President Donald Trump.

A statement from Natural Resources Canada says the funding will support 67 projects to help boost the competitiveness and resilience of the sector.

About $11.3 million will flow through the Investments in Forest Industry Transformation program for six projects that are adopting new technologies and focusing on product innovation to diversify revenue.

More than $7 million will go through the Indigenous Forestry Initiative to 50 projects advancing economic development opportunities.

Another $1.6 million will go to nine projects promoting the commercialization of wood-based products in the construction sector, while $600,000 will go to projects aimed at strengthening international partnerships and decreasing market barriers.

“Canada’s forest industry is vital not only to our economy but also to the global market,” Wilkinson says in the statement. “Protecting this key natural resource is essential to securing the future of our economy and ensuring growth, resilience and sustainability, both at home and abroad.”

Ottawa has also announced $5 million in funding for four projects in B.C. and one in Yukon aimed at helping laid-off workers from the forestry and mining sectors.

A statement from Employment and Social Development Canada says the money will flow through the Canada Retraining and Opportunities Initiative.

It says the projects will help displaced workers transition into new jobs.

This report by The Canadian Press was first published March 19, 2025.