THUNDER BAY – July 28, 2025 | NetNewsLedger Politics 2.0 – Northern Ontario business and political leaders are sounding the alarm following the U.S. Department of Commerce’s decision to hike anti-dumping duties on Canadian softwood lumber exports to 20.56%, a move that industry leaders and municipal officials say threatens the economic foundation of dozens of communities across the region.
The Northwestern Ontario Municipal Association (NOMA) and the Thunder Bay Chamber of Commerce jointly condemned the tariff increase, calling it a protectionist and unjustified escalation that will directly harm mills, forestry contractors, Indigenous workers, and local businesses from Thunder Bay to Red Lake.
“Forestry is the economic lifeblood of communities across Northwestern Ontario,” said Rick Dumas, NOMA President and Mayor of Marathon. “This unjustified and protectionist action will have a direct and harmful impact on workers, families, Indigenous communities, and local economies throughout our region.”
Regional Stability at Risk
The forestry sector remains a cornerstone of Northwestern Ontario’s economy, with thousands of jobs tied to logging, sawmills, and supply chains. However, many mills are already navigating narrow profit margins, high transportation costs, and workforce shortages. The additional pressure of rising U.S. duties could tip the scales toward closures and layoffs in vulnerable areas.
The combined total of U.S. tariffs now exceeds 35%, following years of duty increases since the 2016 expiration of the last Softwood Lumber Agreement. The cumulative economic toll for Canadian producers is estimated to exceed $10 billion CAD—money diverted from innovation, investment, and wages.
“These rising duties threaten the stability of businesses and the livelihoods of thousands of people in Thunder Bay and across Northwestern Ontario,” said Charla Robinson, President of the Thunder Bay Chamber of Commerce. “We urge all levels of government to work together to defend our interests and restore fair access to the U.S. market.”
Call to Action: Three Key Demands
In response to the latest escalation, NOMA and the Chamber are calling on the Government of Canada and the Province of Ontario to take coordinated and immediate action. Their three core demands include:
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Prioritize the softwood lumber dispute as a national economic and trade priority, engaging directly with U.S. counterparts to reach a fair settlement.
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Accelerate legal challenges under CUSMA, NAFTA, and the World Trade Organization to overturn what they call punitive and unjust duties.
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Develop and implement mitigation measures in collaboration with forest-sector stakeholders to provide economic supports to affected communities, workers, and businesses.
Why This Matters to Thunder Bay and Beyond
Thunder Bay, a city with a deep industrial heritage rooted in forestry, is among the key population centres that could feel the ripple effects of weakening U.S. trade access. Local sawmills, Indigenous forestry ventures, and rural municipalities may all face deeper uncertainty if no action is taken.
“We stand united with our forestry workers and industry partners,” added Dumas. “Fair and predictable access to the U.S. market is essential—not just for our region, but for the economic health of communities right across Canada.”
With trade tensions once again heating up under the renewed influence of protectionist U.S. policy, local voices in Northwestern Ontario are demanding more than rhetoric from Ottawa—they want strategy, resources, and results.
