B.C. plywood manufacturer says it cannot absorb 50% tariff cost as deadline looms

Canada's Richmond Plywood manufacturer is grappling with the prospect of absorbing a 50% tariff cost as the deadline approaches. Canada is attempting to secure a new trade deal ahead of the March 1st deadline, which would impose tariffs on around $28 billion worth of Canadian exports, including 20% of Richmond Plywood's sales. Bhavjit Thandi, Richmond Plywood's CFO, stated that the 50% tariff is beyond their absorption capacity and unlikely to be something U.S. customers would agree to pay.

Prime Minister Mark Carney is expected to discuss the issue with U.S. President Donald Trump prior to the deadline, suggesting that further negotiations will take place in the coming days. While B.C. accounts for only 13% of the U.S. share of exports impacted by these tariffs, this figure is higher than Ontario and Quebec. David Eby's government has not commented on trade talks, but Premier Eby expressed reluctance to make concessions such as returning U.S. alcohol to B.C. shelves without tariff relief for key industries, including forestry.

However, sources indicate that the U.S. has shown little interest in discussing softwood lumber, which is a significant sector of the Canadian economy and should be prioritized at the negotiating table. Despite the standoff, there remains a possibility that the new 50% U.S. tariffs may be delayed or cancelled, yet businesses anxiously await the outcome as the deadline looms.