Nelson industry experts predict the U.S.-Canada tariffs war will be quick, but painful

Photo: Samantha Holomay

The latest round of U.S. tariffs on softwood lumber and other Canadian goods is putting pressure on mills, workers, and small businesses. In response, many in Nelson are looking for ways to keep money circulating within the local economy.

Industry experts and business owners say prioritizing Canadian-made goods and services is key to offsetting the impact. While some brace for economic strain, others believe the tariffs won’t last long.

“Alberta needs to be on the team,” said Nelson forestry expert Joe Karthein. “Oil is where we can hit back—the more it hurts, the more pressure it puts on U.S. trade policies."

Despite concerns, Karthein doubts the tariffs will hold in the long term, arguing that the U.S. is too reliant on Canadian lumber.

“I don’t see a 25 per cent tariff lasting,” he said. “A huge portion of U.S. wood comes from B.C. Cutting off that supply would be catastrophic for their construction industry.”

Karthein predicts the 25 per cent tariffs, implemented Feb. 1, will last only a few months.

“Maybe six months at most,” he said. “It’s a massive hit to B.C. lumber, but I doubt it will last.”

Canada’s Response to U.S. Tariffs

In retaliation, Prime Minister Justin Trudeau announced Canada will impose 25 per cent tariffs on $155 billion worth of U.S. goods, with $30 billion in tariffs starting Tuesday and the remainder after 21 days. Trudeau emphasized the need for Canadians to support domestic industries in response to trade disputes.

Tips to shop local amid tariffs:

• Choose locally sourced lumber, furniture, and flooring

• Shop at independent businesses

• Dine at local restaurants and cafés

• Look for Canadian retailers when shopping online

• Buy from builders and suppliers who prioritize Canadian materials

By making these choices, residents can help support local businesses and keep the economy strong.