‘Deeply disappointed’: Ontario ministers warn of rising housing costs in U.S. due to softwood lumber duties

Ontario ministers, Kevin Hollan and Vic Fedeli say Ontario is "deeply concerned" in light of U.S. Softwood Lumber Duties (Left: THE CANADIAN PRESS/Sean Kilpatrick. Right:THE CANADIAN PRESS/Christopher Katsarov. LEFT: THE CANADIAN PRESS/Christopher Katsarov).

Two members of the Ontario cabinet are slamming the United States for its plan to sharply increase duties on Canadian softwood lumber, warning that such measures could drive up housing costs in the U.S. and threaten more than 130,000 industry jobs.

The criticism comes nearly a month after the U.S. Department of Commerce announced it intends to nearly triple anti-dumping duties on Canadian softwood lumber, pushing the total levy to nearly 27 per cent.

“Ontario is deeply disappointed that the United States intends to drastically raise duty rates on Canadian softwood lumber exports later this year,” said Ontario’s Associate Minister of Forestry Kevin Hollan, alongside Vic Fedeli, minister of economic development, job creation and trade.

“These unjustified and punitive measures will raise construction costs and further strain housing affordability for American families.”

Their remarks follow a string of trade threats made from the Trump administration, that has also drawn sharp rebukes from other Canadian officials, such as B.C. Premier David Eby.

‘Vital part of the economy’

Both officials also emphasize that softwood lumber exports are a vital part of Ontario’s economy and support “regional prosperity.”

They estimate that the forestry sector alone generates close to $23 billion in revenue and employs more than 137,000 Ontarians.

“Continued trade barriers risk undermining this success,” they wrote to CTV News Toronto.

Trump’s escalation of lumber fight

U.S. President Donald Trump, who has previously claimed the U.S. does not need Canadian lumber, signed executive orders in early March directing his administration to further investigate lumber imports.

He also instructed agencies to boost domestic timber supply, a move that Canadian officials warn could create major disruptions in the U.S. housing market.

Eby warned that the rising trade barriers “cost jobs south of the border and in British Columbia,” and will ultimately make housing less affordable for American buyers.

Ontario Premier Doug Ford has also weighed in, telling CNN that “the majority” of the lumber used in homebuilding in the U.S. comes from Canada, and any new barriers will “increase the cost of a house.”

Canada defends cross-border trade

Global Affairs Canada has argued that U.S. housing markets heavily depend on Canadian lumber, given that American mills can’t meet domestic demand on their own.

Ontario’s ministers echoed that point, saying “we remain firm that these duties should be lifted entirely.”

“Ontario continues to support the Canadian forest industry and free trade between our two countries,” the statement said.