Lumber mill’s sales to U.S. went ‘straight to zero’
I’m a reporter based in B.C.’s Interior, where I’ve been covering how the new tariffs are already impacting the lumber industry.
“We’ve gone straight to zero, so no more sales to the States,” said Bhavjit Thandi, CFO of Richmond Plywood Corporation.
He said on Friday evening the co-operative plywood mill based in B.C.’s Lower Mainland had a shipment of about 10 trucks filled with high-grade plywood en route to customers in the U.S.
“Once we knew that the trade deal fell apart, we told them all to come back,” said Thandi.
He said the mill simply cannot absorb the 50 per cent tariffs, so there was no point in having the loaded trucks cross the border.
“No customer is willing to pay a 50 per cent price increase.”
Thandi said Richmond Plywood is already looking at scaling back production, since about 20 per cent of its sales were with American customers. He said those customers have voiced their frustration about the supply chain disruptions and price increases.
Forestry is a major part of B.C.’s economy, generating about 23 per cent of the province’s manufacturing sales in 2024.
Even forestry businesses that aren’t directly affected by the tariffs will likely be affected.
James Sangara with Leslie Forest Products in Delta, B.C., which creates specialty lumber products, says he expects to see logging really slow down.
“There’s going to be less wood around to buy,” he said.