Canadian PM Carney promises support for Canadian lumber industry

Canadian Prime Minister Mark Carney announced on Tuesday that the Canadian government would extend favorable loan guarantees to the Canadian softwood lumber industry, which is grappling with tariff impacts that are dragging down exports to the US.

Key highlights

Canadian PM Carney announced that his government would be providing up to CAD $700M in loan guarantees to the Canadian softwood lumber industry, which has been facing a sharp decline as exports to the US market dry up thanks to steep commodity tariffs imposed by the Trump administration.

PM Carney stated that while his government is still willing to seek a deal with the US and the Trump team, he noted that over 85% of Canada-US trade remains effectively tariff-free. Most trade between Canada and the US is already covered by the "USMCA" agreement that Donald Trump personally negotiated during his first term as a follow-up to the long-standing North American Free Trade Agreement (NAFTA), which covered more trade than the USMCA for half of the effort.

Prime Minister Carney wrapped up by stating that he would speak with Trump personally "when it makes sense", signaling that Canada is not in a rush to renegotiate with Trump over his own trade deals on a cyclical basis.

Market reaction

Canadian Dollar (CAD) markets remain largely unmoved on the statements, with the Loonie treading water as investors await meaningful developments on trade and economic data.

USD/CAD daily chart