Relief for tariff-hit softwood lumber sector on the way: Industry minister

The minister said in Fredericton Wednesday the government will provide funding through banks, backstopped by the Business Development Bank of Canada, in the "coming days."

Federal Industry Minister Melanie Joly said financial relief is coming soon for Canada’s tariff-struck softwood lumber sector.

The minister said in Fredericton Wednesday the government will provide funding through banks, backstopped by the Business Development Bank of Canada, in the “coming days.”

“That’s for supporting, right now, our businesses to make sure that they stay afloat,” Joly said. “Meanwhile, we will make sure that we work on a buy-Canadian policy to have our homes and our major projects and our infrastructure being built with the great softwood from New Brunswick.”

While the vast majority of Canadian trade with the U.S. is exempted from tariffs because of the Canada-U.S.-Mexico Agreement, U.S. President Donald Trump has targeted the steel, aluminum, auto, energy and lumber sectors with duties.

In August, Prime Minister Mark Carney announced a $1.25 billion aid package to support the softwood lumber sector.

Joly said the funding will go toward ensuring businesses stay afloat while dealing with “unjustifiable” tariffs, adding the government will also offer support for operations and capital expenditures.

The minister said the government funding will be provided based on individual companies’ needs.

“We’re cutting red tape and we’re using the banking system to make sure that funding is available,” she told reporters Wednesday. “It’s not a question of how much each province will have, it’s ultimately what are the needs of the companies across the country.”