Report says B.C. forestry has structural problems that long predate recent U.S. trade tensions

It was recently reported that Interfor Corp. (TSX:IFP), a B.C.-founded forest products company and one of North America’s largest lumber producers, is planning to relocate its head office operations from Metro Vancouver to Georgia. A couple of weeks earlier, Canfor Corp. (TSX:CFP) announced the permanent closure of its Northwood Pulp Mill in Prince George. These are only the latest in a long list of forestry operations that have closed or left British Columbia. According to the Council of Forest Industries (COFI), 23 mills have permanently closed since 2023. The latest reports suggest the count may now be approaching 30.

Premier David Eby’s government has been quick to blame the shrinking B.C. forest industry on U.S. President Donald Trump’s tariffs. The tariffs are undoubtedly another blow. But the deeper causes of the crisis in B.C. forestry lie closer to home.

B.C. lumber production has been in steep decline for a decade or more. In the Interior, which accounts for almost 90 per cent of provincial production, output has fallen 57 per cent since 2016. On the coast, the drop amounts to 53 per cent.

On a volume basis, B.C. Interior lumber production has fallen by almost 16 million cubic metres since 2016. Production has dropped by 1.6 million cubic metres since Trump returned to office, casting doubt on claims that his tariffs are the main cause of the B.C. industry’s troubles.

That conclusion is reinforced by research by the Canadian Forest Sector Transformation Task Force, established by the federal government in late 2025 to identify actions needed to improve the long-term competitiveness of Canada’s forest products sector.

Read the full article here: https://www.biv.com/news/commentary/opinion-trump-tariffs-arent-bc-forestrys-biggest-problem-12668236