‘Northern Ontario’s forestry workers and communities will be hit hard, while American families will pay even more to build or renovate their homes. No one wins in this trade war’
The Federation of Northern Ontario Municipalities (FONOM) is voicing strong opposition to the United States Department of Commerce’s decision to raise countervailing duties on Canadian softwood lumber to 35.19 per cent. This sharp increase will deal a serious blow to northeastern Ontario’s forestry sector, jeopardizing jobs, local businesses and the economic stability of communities across the region.
“This latest tariff hike is both unfair and economically destructive,” said FONOM president Danny Whalen in a release.
“Northern Ontario’s forestry workers and communities will be hit hard, while American families will pay even more to build or renovate their homes. No one wins in this trade war.”
According to the Canadian Chamber of Commerce, existing U.S. tariffs on construction materials have already added US$6,000 to the cost of building a single-family home. If the current tariff structure remains in place, that figure could climb by US$14,000 by 2027 — further worsening North America’s housing affordability crisis.
FONOM welcomes recent federal and provincial support for the forestry sector — including Prime Minister Mark Carney’s announced aid package and Premier Doug Ford’s ongoing advocacy — but warns that short-term relief is not enough.
“We stand shoulder to shoulder with partners like the Ontario Forest Industries Association, NOMA, and forestry leaders across Canada,” Whalen added. “It’s time for the Canadian and U.S. governments to stop playing politics and negotiate a fair, long-term, rules-based agreement that safeguards rural and Indigenous economies and keeps lumber affordable for all.”
FONOM calls on all levels of government to prioritize a permanent resolution to the softwood lumber dispute, ensuring the long-term stability of Ontario’s vital forest industry and the communities that depend on it.