US tariffs to curb Canadian lumber demand and profitability, Moody’s warns

Moody’s Investors Service expects the latest round of US tariffs and countervailing duties on Canadian lumber to reduce demand and weaken profitability across the North American forest products industry. The agency said that Canadian producers will be most affected, as higher trade costs make their lumber less competitive in the US market. The new tariff levels are expected to lower export volumes and pressure margins at a time when sawmill utilization rates are already constrained by limited fibre availability and soft housing demand. According to Moody’s, the tariff-driven decline in Canadian shipments will likely push ...