Trade deal paused tariffs on Canada, but B.C. forest sector outlook remains unclear

Prime Minister Mark Carney and U.S. President Donald Trump signalled late Tuesday that a trade deal is in the works to avoid punishing 50 percent tariffs on many Canadian goods, pausing the implementation for three days.

Trump told reporters in Washington on Wednesday: "The 50 per cent tariffs across the board were going on against Canada today, and they called yesterday, and they gave us the points that we had to have. Very fair deal for both."

Full details of the agreement have not yet been released. Trump said the deal removes all Canadian tariffs on U.S. agricultural products. Carney said on social media the sides had made "significant progress" toward a deal that "reinforces" Canadian advantage. Canada's chief trade negotiator, Dominic LeBlanc, was working with counterparts in Washington on final terms.

However, it remains unclear whether the agreement will address the layered duties facing British Columbia's softwood lumber sector. Some of these tariffs were imposed by Trump and are known as Section 232 tariffs, referring to the section of the U.S. Trade Expansion Act relied upon to impose them. Others predate Trump's election and stem from a long-standing market fairness dispute between the countries.

Kim Haakstad, representing the B.C. Council of Forest Industries and the B.C. Lumber Trade Council, said: "Although the pause is a positive step, the implications for Canada's forest sector are not yet clear. Key issues, including the Section 232 tariff on lumber and the softwood lumber dispute, remain central to these discussions."

Carney is scheduled to meet with Canada's premiers, including British Columbia's David Eby, on Wednesday afternoon to share more details of the deal.

The pause buys negotiators time but leaves the forest industry—a critical part of B.C.'s economy—in a holding pattern as talks continue on provisions that could determine whether tariffs remain in place or are lifted.