Lumber Futures Slide Below $565 as Canada-U.S. Trade Tensions Weigh on Demand
Lumber futures approached a five-month low as Canada-U.S. trade tensions, elevated housing costs and weaker single-family construction added pressure to North American lumber demand.
By Paul Ploumis
Published August 28, 2026
Key Points
- Lumber futures fell below $565 per thousand board feet, nearing a five-month low.
- Canada announced counter-tariffs on several U.S. goods, including lumber.
- More than 20 sawmills across British Columbia have closed since 2023.
- U.S. housing starts fell 12.4% in July as single-family construction declined sharply.
MONTREAL (Scrap Monster): Lumber futures fell below $565 per thousand board feet, nearing a five-month low as the escalating Canada-U.S. trade dispute weighed on demand.
Trade Tensions Pressure the North American Lumber Market
Canada announced counter-tariffs on several U.S. goods, including lumber, stating that the measures were intended to protect Canadian industries.
Prime Minister Carney said he remained open to negotiations but would not accept a subordinate position to the U.S. The dispute is weighing on the forest sector of both countries, with lumber prices rising sharply following the tariff announcement.
More than 20 sawmills across British Columbia have closed since 2023, while seasonal renovation activity in the U.S. is also facing pressure from elevated prices.
Housing Weakness Adds to Demand Pressure
Persistently high inflation has reduced homeownership affordability and kept mortgage rates elevated, while construction spending remains subdued.
U.S. housing starts fell 12.4% in July, driven by a sharp decline in lumber-intensive single-family construction, further weakening demand.
Courtesy: www.tradingview.com