Canada Pledges C$6.5 Billion to Transform Forestry Sector Amid U.S. Tariff Pressure
Canada's federal government has proposed C$6.5 billion over six years to modernize its forest industry, strengthen wood fibre supply chains and support new processing facilities. Funding is scheduled to begin in April 2027.
By Paul Ploumis | November 6, 2026
Key Points
- C$4 billion: New Forestry Sector Accelerator supporting major processing facilities, biorefineries and higher-value products.
- C$2.5 billion: Facility modernization, productivity improvements, research and wood fibre supply-chain initiatives.
- Funding timeline: Proposed spending begins in fiscal 2027–28 as Canadian producers continue facing U.S. lumber duties and tariffs.
SEATTLE (Scrap Monster): Canada's federal government has proposed C$6.5 billion over six years to help its forest industry respond to U.S. trade restrictions, changing wood-product demand and growing pressure to improve productivity.
The measures were introduced in Budget 2026, tabled November 5 by Finance Minister François-Philippe Champagne.
Canada's forest sector employs nearly 200,000 people and contributed C$29.7 billion to national GDP in 2025, according to...