Sales from lumber mills to the U. S. dropped ‘to nothing’
I’m a reporter located in B. C.’s Interior, where I’ve been following how the recent tariffs are affecting the lumber industry.
“We’ve gone straight to zero, so no more sales to the States,” said Bhavjit Thandi, CFO of Richmond Plywood Corporation.
On Friday evening, he mentioned that the co-operative plywood mill situated in B. C.’s Lower Mainland had about 10 trucks loaded with high-grade plywood heading to U. S. customers.
“Once we knew that the trade deal fell apart, we told them all to come back,” said Thandi.
He explained that the mill simply can’t manage a 50 percent tariff, making it pointless for the loaded trucks to attempt crossing the border.
“No customer is willing to pay a 50 percent price increase.”
Thandi noted that Richmond Plywood is already considering reducing production since approximately 20 percent of its sales were with American clients. He mentioned those customers have expressed their annoyance regarding supply chain issues and rising prices.
The forestry sector plays a significant role in B. C.’s economy, contributing roughly 23 percent of the province’s manufacturing sales in 2024.
Even businesses within forestry not directly impacted by tariffs will likely face challenges.
James Sangara from Leslie Forest Products in Delta, B. C., which specializes in producing unique lumber products, anticipates a slowdown in logging activity.
“There’s going to be less wood around to buy,” he said.
Source link
