B.C. plywood maker says 50% U.S. tariff is unabsorbable as deadline nears

A British Columbia plywood manufacturer is expressing grave concern over the impending 50% U.S. tariff, stating it is unsustainable for their business. The tariff is scheduled to take effect on Wednesday, potentially impacting a significant portion of Canadian exports.

Bhavjit Thandi, CFO of Richmond Plywood, explained the dire situation: """"A 50 percent tariff is not a margin we can absorb, nor is it something U.S. customers will be willing to pay."""" The company produces high-end products, and the proposed duties could affect 20% of their sales.

Canadian Trade Minister Dominic LeBlanc has been meeting with U.S. counterparts, including Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, in a race against time to finalize a new trade agreement. Prime Minister Mark Carney indicated he expects to speak with U.S. President Donald Trump before the Wednesday deadline, though details remain scarce.

These new tariffs could impact roughly $28 billion worth of Canadian exports. An economist from Central 1 Credit Union estimates that B.C. exports could be disproportionately affected, accounting for about 13% of the total Canadian exports facing the tariff, a figure higher than that for Ontario and Quebec.

Despite the looming deadline and ongoing negotiations, B.C. Premier David Eby has been reluctant to make concessions, such as returning U.S. alcohol to B.C. shelves, without tariff relief for key industries like forestry. However, sources suggest the U.S. has shown little interest in discussing softwood lumber, a sector crucial to the Canadian economy. Businesses are anxiously watching the negotiations, hoping for a delay or cancellation of the tariffs.

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A 50 percent tariff is not a margin we can absorb, nor is it something U.S. customers will be willing to pay.