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Trump may test Canada’s timber

Donald Trump

Donald Trump

A Donald Trump administration, combined with a Republican-controlled Senate and House of Representatives, could have reverberations that will be felt by the Canadian economy for years. Source: CTV News

One of the first trade irritants that could test US-Canadian relations is softwood lumber.

A 10-year-old agreement that removed U.S. duties on Canadian softwood lumber expired last month. That paved the way for the possibility of steep taxes, which could result in layoffs throughout Canada’s forestry sector.

Trump can expect to face pressure from the US lumber lobby to implement such duties. In an era of rising protectionism, he may be emboldened to oblige.