Nova Scotia forestry sector anxious about possible U.S. tariffs

Greg Watson, a seasoned veteran in the forestry industry, oversees the transportation of spruce logs from the Cobequid hills in Nova Scotia to the United States. With almost three decades of experience, Watson is well aware of the challenges facing the industry, particularly in light of the growing concerns surrounding trade tariffs.

As the manager of North Nova Forest Owners Co-op, a collective of over 430 landowners in northern Nova Scotia, Watson understands the significant impact that potential tariffs could have on their operations. Nearly half of the wood harvested from their woodlots is exported to the U.S., making them particularly vulnerable to any trade disruptions.

In the wake of U.S. President Donald Trump’s musings about imposing tariffs on Canadian exports, Watson is already exploring alternative markets and diversification strategies to mitigate the potential impact on their business. The uncertainty surrounding the future of trade relations between Canada and the U.S. has put pressure on industry players to adapt and innovate.

One such player is Robin Wilber, the president of Elmsdale Lumber Company, a sawmill located north of Halifax. Wilber emphasizes the importance of maintaining cost-effective production processes, especially in the face of potential tariffs on imported machinery parts. The reliance on global supply chains for essential components means that any increase in costs could have a ripple effect on the entire industry.

The implications of tariffs extend beyond lumber production, reaching other sectors such as paper manufacturing. Port Hawkesbury Paper, a producer of supercalendered paper, faces the prospect of higher costs and reduced market access if tariffs are implemented. The company is actively engaging with stakeholders on both sides of the border to prepare for any potential challenges ahead.

Forest Nova Scotia, an industry group, warns of the dire consequences of tariffs on the forestry sector, estimating that the industry exports around $600 million worth of products to the U.S. annually. The imposition of tariffs could lead to business closures, job losses, and production cutbacks, creating a ripple effect throughout the supply chain.

Despite the uncertainty looming over the industry, Watson remains hopeful that negotiations between Canada and the U.S. will yield a positive outcome. While the possibility of subsidies offers some temporary relief, long-term solutions must be sought to ensure the sustainability of the forestry sector in Nova Scotia.

In conclusion, the forestry industry in Nova Scotia faces a challenging road ahead as trade tensions threaten to disrupt established supply chains and markets. Industry players like Greg Watson and Robin Wilber are proactively seeking ways to adapt to the changing landscape, emphasizing the importance of resilience and innovation in the face of uncertainty.