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

A Richmond plywood manufacturer is preparing for the impact of 50% tariffs set to take effect on Wednesday. Canada-U.S. Trade Minister Dominic LeBlanc met with U.S. Trade Representative Jamie Jamieson Greer and U.S. Commerce Secretary Howard Lutnick as officials strive to finalize a new trade deal before the deadline. The tariffs will affect approximately $28 billion worth of Canadian exports, with 20% of sales at Richmond Plywood, a company known for producing high-end products.

Bhavjit Thandi, the CFO of Richmond Plywood, stated that absorbing the tariff costs and passing them onto U.S. customers is not feasible. Prime Minister Mark Carney, who visited Newfoundland on Monday, plans to discuss the matter with U.S. President Donald Trump before the deadline, hoping to secure more time for negotiations. While the government of British Columbia is not commenting on the trade talks, sources suggest that the province could face significant losses, with about 13% of U.S. exports impacted.

Premier David Eby remains reluctant to negotiate any concessions, such as reinstating U.S. alcohol sales, without securing tariff relief for essential industries like forestry. Despite the ongoing impasse, there is still hope for delaying or eliminating the tariffs, but businesses are running out of time as the deadline approaches.