Ontario Forest Sector Faces Crisis Amid New Section 232 Tariffs and Escalating Trade War

Joint Statement from Ontario Municipal and Business Leaders

September 30, 2025. Today, business, union, and community leaders from across Ontario voiced alarm in response to the latest escalation of the U.S.–Canada trade war. Yesterday, President Trump made the egregious proclamation that Canadian forest products represent a threat to U.S. national security, mystifying those impacted.

This decision, made under Section 232 of the Tariff Act, places an additional 10% on softwood lumber producers, who are already paying a 35% duty on exports. Market entry costs for Canadian softwood lumber producers are now approximately 45%. This decision will subject other products, such as upholstered wooden products, cabinets, and vanities, to 25% tariffs at the border.

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