Page 6 - Jan-Feb-2025 - REPORTER

MESSAGE FROM THE PRESIDENT

KEEP ONTARIO WORKING

What is the next step for our

relationship with the United States?

TREVOR SMALL
LBMAO President

hat will the next few weeks and months bring for our exact match, I could see Canada adding a duty to all US imports of
Windustry and for the economy of Ontario and Canada? I lumber if lumber is one of the areas subject to new tariffs.
spent the last few days meeting with retailers and suppliers and What should we do? The best strategy that all suppliers and
there is a genuine concern for what happens next. The new Trump retailers in Ontario need to adopt is to promote buy Canadian and
administration has proposed a 25% tariff on our exports to the buy from Canadians. The province of Ontario through Foodland
United States. Possibly happening February 1st. (Updated now Ontario has done an excellent job of promoting “good things
possibly March 1). grow, in Ontario.” The building supply industry in Ontario needs
What does this mean for the building material supply to promote products made here. We manufacture great products
business? The suppliers that manufacture products sold in in Ontario. We need to brag to customers about that more. Made
both Canada and the US are deeply concerned and are leery in Canada for Canadians needs to be adopted.
about capital spending in Canada. No suppliers that I spoke with Retailers – here is your chance to promote Canadian made
recently are willing to add production or equipment until they products! Aisle signs, stickers and shelf labels will help consumers
have a firm understanding of what trade barriers they may face. who may not know where something is made.
How will this effect the price on commodities like lumber? Manufacturers – here is your chance to promote your
While it is true that lumber exported to the US has had duties products is they are made in Canada. Labels on the package,
placed on it for years, in August 2024 the US Department of POP information, and “Made in Canada” advertising could help
Commerce raised the tariffs on Canadian softwood imports from build your brand with customers who are growing weary of the
8.05% to 14.54%. As of 2022, the United States represented distractions and issues between Ottawa and Washington.
77.7% of all our lumber exports. China was second with a 7.98% Will we survive tariffs from our neighbour to the south if they
share of exports. The value of those exports was $28.6 billion happen? Yes, we have handled issues before and we will handle
dollars. Clearly if the Americans decide they are going to target them now. We need to work to grow our Canadian customers
lumber with new tariffs, our industry has few other customers, awareness of all the good things made in this country. This is a
and it will have a significant impact on our producers. We will strategy that will help grow Canadian businesses in the future. It
see an immediate impact on producers who are currently selling is also a strategy that our American competitors can’t adopt. If we
lumber at the pre Covid price levels. Mill closures and shutdowns are successful, it will reduce our reliance on the US as the primary
will happen under new tariffs which potentially will result panic export market.
buying and product shortages in the short term.
What will be the response from Canada? I did some research
and the value of US lumber exports to Canada as of 2022 was
$10.4 billion with Canada being the largest export market (27.31
%) and Mexico second at $7.4 billion (17.2%) While it is not an
6 LBMAO Reporter - January-February 2025 www.lbmao.on.ca