Canadian Forestry Giants Report Losses Amid New U.S. Tariffs

Canadian forestry leaders West Fraser Timber Co. Ltd. and Canfor Corp. reported second-quarter financial losses driven by market oversupply and impending trade barriers. West Fraser reported a US$61 million loss on sales of US$1.43 billion, a wider loss than the US$24 million recorded in the same period last year, though an improvement over its US$188 million first-quarter loss.

Canfor Corp. reported a narrowed second-quarter loss of $18.5 million, down from a $202.8 million loss last year, with sales rising to $1.53 billion. To stabilize its business, Canfor permanently closed its Fox Creek sawmill in Alberta, a pulp mill in Prince George, British Columbia, and two sawmills in Sweden. The company expects $65 million in third-quarter restructuring costs.

Both companies are preparing for a U.S. government plan to impose 50 per cent tariffs on Canadian plywood, paper, and other wood-derived products starting August 19. West Fraser's overall lumber production fell 11% in the first half of 2026 following closures in Augusta, Georgia, 100 Mile House, British Columbia, and a wind-down in High Level, Alberta.

Despite the headwinds, West Fraser executives noted a constructive outlook for residential construction due to a U.S. housing supply deficit. The company achieved a $59 million operating profit for the quarter, which was offset by interest, taxes, and depreciation.