In response to the tariffs imposed by the administration of U.S. President Donald Trump, Canada has decided to use its lumber exports as a leverage tool in the trade dispute. Canada is one of the largest exporters of softwood to the United States, and this lumber is primarily used in the construction industry. By reducing lumber exports or imposing counter-tariffs, Canada aims to influence the U.S. construction market and pressure the U.S. administration to reconsider its trade policies. This escalation demonstrates the complexity of trade relations between the two countries, where economic interests are highly intertwined.

Additionally, Canada plans to take a counter-action to face the tariffs that U.S. President Donald Trump announced today for Canada, using its lumber exports.

According to a report by Bloomberg, Canadian lumber exports to America are a vital element in the U.S. construction sector, giving Ottawa significant leverage in trade negotiations.

It adds that Canada intends to use lumber exports as a bargaining chip in its ongoing trade dispute with the United States.

Experts believe that imposing restrictions on lumber exports or increasing tariffs on U.S. products could be a suitable response to U.S. trade policies that harm Canadian industries.

Jens Peter Barnein, chief economist at Vifia Economics, stated that Canada can and should use lumber as a strong weapon to respond to any tariffs on imports, possibly by imposing taxes on lumber exports.

He added that despite claims by President Donald Trump that the United States "does not need" anything produced by Canada, this is not the case at all for lumber, as Canada produces about 25 percent of U.S. demand.

"Theoretically, the United States has enough trees to meet domestic demand, but if you really want to do that, you would have to open up the state-owned forests in Washington, Oregon, and Idaho, which would face fierce resistance contradicting the Environmental Protection Agency."

For decades, the lumber trade has been a point of contention between the two countries, with Washington accusing Canadian producers of receiving government support that gives them an unfair competitive advantage. In turn, Canada asserts that these claims are unfounded and that U.S. actions hinder free trade.

As economic tensions escalate, pressure is mounting on the Canadian government to take a firmer stance in defense of its trade interests. Resorting to the lumber weapon may be a strategic move to force Washington to reconsider its policies and protect Canadian industries from the impacts of the ongoing trade war.