Prime Minister Carney Announces Major Overhaul of Canada’s Softwood Lumber Industry

West Kelowna, British Columbia – August 5, 2025

With global trade undergoing a seismic shift, Canadian Prime Minister Mark Carney today unveiled an ambitious plan to transform the country’s softwood lumber industry. As part of a broader industrial strategy, the measures aim to boost domestic production, encourage innovation, and position Canadian wood as a key player in sustainable economic growth.

Key highlights include:

•Up to $700 million in loan guarantees to help companies stay afloat and restructure during the transition;

•$500 million to support product and market diversification, including support for Indigenous-led forestry businesses;

•Mandating the use of Canadian wood in federal construction projects;

•A new export diversification initiative targeting high-growth global markets;

•$50 million for training and income support for over 6,000 workers affected by industry changes.

Prime Minister Carney emphasized that “the forest sector is at the heart of the Canadian economy,” calling for bold investments in innovation, local expertise, and sustainable materials.

Ministers François-Philippe Champagne, Mélanie Joly, Patty Hajdu, and Tim Hodgson echoed the importance of these measures to protect jobs, support communities, and ensure long-term resilience.