Section 232 on softwood lumber
A 10% tariff applies to softwood timber and lumber, with no CUSMA exemption, in addition to existing U.S. duties on Canadian softwood lumber.
U.S. tariffs on Canadian goods (Trade Commissioner Service)SECTOR GUIDE · REGIONAL TARIFF RESPONSE INITIATIVE
Tariff relief for lumber, wood and furniture companies
For sawmills, engineered wood, millwork, cabinet and furniture makers.
Wood is hit by several U.S. measures at once: Section 232 tariffs on softwood lumber, cabinets, vanities and upholstered furniture, and the 50% Section 338 tariff on wood products and furniture, on top of long-standing U.S. duties on Canadian softwood lumber. RTRI also recognizes forestry's supply chain, and transportation companies tied to forestry exporters can qualify.
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Tariff facts checked against official sources on October 29, 2026 • Sources linked below
See all sector guidesHOW TARIFFS HIT THIS SECTOR
The tariffs that affect
lumber, wood products and furniture.
Show the U.S. share of your sales and what happened to it after each tariff date. For cabinet and furniture makers, the scheduled January 2027 increases are a real planning risk worth describing.
Tariff measures change often. Each item links to the official source, and rates are as published on October 29, 2026.
Section 232 on cabinets, vanities and furniture
Certain upholstered furniture, kitchen cabinets and vanities face 25%, with no CUSMA exemption. On January 1, 2027, upholstered furniture is scheduled to rise to 30% and kitchen cabinets and vanities to 50%.
U.S. tariffs on Canadian goods (Trade Commissioner Service)Section 338
Since August 22, 2026, a 50% tariff with no CUSMA exemption covers Canadian wood products and furniture, and since September 15, 2026 it stacks on Section 232 where both apply.
U.S. tariffs on Canadian goods (Trade Commissioner Service)Canadian counter-tariffs
Canada applies 25% to U.S. sawn lumber, 50% to U.S. plywood and veneered panels, and 25% or 50% to U.S. seats and furniture.
Complete list of U.S. products subject to counter tariffs (Finance Canada)WHO QUALIFIES
Who this guide
is for.
Transportation businesses can qualify if their core activities are directly tied to the operations or value chain of exporters in the forestry sector. Sawmills, wood product and furniture makers qualify as manufacturers.
Retail, local consumer services (such as hotels, restaurants, utilities, healthcare and recreation), oil and gas extraction and construction services are generally not eligible.
Businesses we see in this sector
Sawmills and lumber producers. Engineered wood, panels and millwork. Kitchen cabinet and vanity manufacturers. Furniture makers. Transportation firms tied to forestry exporters.
$1M+ in annual revenue
In at least one of your last two fiscal years, as an incorporated, for-profit business located and operating in the region you apply to.
Viable before tariffs
Assessed through your attestation, financial statements and operating history. Businesses founded after March 21, 2025 are considered case by case.
A documented tariff impact
Meet at least one test: a sector hit by Section 232 or 338 tariffs (directly or as a supplier), 25% or more of revenue from goods ultimately exported to the U.S., or harm from tariffs or the uncertainty they created.
HOW RTRI CAN HELP
Liquidity assistance
and pivot projects.
Liquidity assistance covers tariff-related cash-flow shortfalls in your existing labour and overhead. Pivot projects fund net-new investment on top of the business you already run. You can apply for either, or both.
01 / EXISTING LABOUR AND OVERHEAD
Liquidity assistance
Non-repayable support for a tariff-related cash-flow shortfall in the business you already run.
- Funding
- Up to $2M, non-repayable
- Basis
- 50% of average monthly payroll, capped at your demonstrated 12-month need
- Period
- Up to 12 months, ending by March 31, 2028
For lumber, wood products and furniture
Mills and plants with large crews can use liquidity, 50% of average monthly payroll over the last 12 months up to $2M, to avoid curtailments while markets reset.
Tariffs, customs duties, raw materials, inventory and debt payments are not eligible liquidity costs. Dividends are restricted while liquidity support is in place.
02 / NET-NEW INVESTMENT
Pivot projects
Funding for net-new investment on top of your existing labour, overhead and operations.
- Non-repayable
- Up to $1M; up to 50% of eligible costs
- Repayable
- Over $1M; up to 75% of eligible costs, interest-free
- Completion
- By March 31, 2029
Typical projects in this sector
- Value-added lines such as engineered wood, mass timber or millwork
- Drying, grading or optimization equipment
- Products and certifications for Canadian housing and markets outside the U.S.
- Automation in cabinet and furniture production
- New products from residuals and by-products
Projects need new, incremental costs and measurable results. Land and building purchases, entertainment, vehicles and refinancing are not eligible.
How the limits fit together
Up to $3M in combined non-repayable support: $2M for liquidity plus $1M for a non-repayable pivot. Total RTRI support, including repayable funding, is capped at $20M per business. The same costs cannot be funded twice.
THE EVIDENCE THAT MATTERS
What to gather
before you apply.
Tariff impact is what gets assessed. You do not need to attach every business record, but each claim should trace back to one.
Examples of indirect tariff impact- U.S. shipments and prices by product before and after the tariff dates
- Broker statements showing duties paid
- Customer cancellations or price concessions that cite tariffs
- Curtailments, shift reductions, layoffs or Work-Sharing
- Higher costs for U.S. panels, hardware or components
WHERE TO APPLY
Apply through your
regional agency.
RTRI is delivered by seven regional development agencies, each with its own process. You apply to the agency for the region where your business operates, and separate requests are needed for employees in more than one region.
FedDev Ontario
Southern Ontario
Fillable PDF form, submitted from Adobe Acrobat Reader
FedNorNorthern Ontario
FedNor self-service portal, after a call with a FedNor officer
CEDQuebec
Contact CED first; CED assesses eligibility, then sends the form
ACOAAtlantic Canada
MyACOA Client Portal, after talking to your nearest ACOA office
PrairiesCanAlberta, Saskatchewan and Manitoba
Detailed application in the PrairiesCan online portal
PacifiCanBritish Columbia
PacifiCan online portal, stream “BC (PacifiCan) - RTRI-Business”
CanNorYukon, Northwest Territories and Nunavut
PDF application form, submitted from the form or by email to CanNor
ALL REGIONSFind your agency
All seven regional development agencies
SECTOR QUESTIONS
Tariff relief for
lumber, wood products and furniture, answered.
Practical answers based on the agencies' published RTRI guidance and official tariff sources.
Is there tariff relief funding for sawmills and lumber companies?
Yes. Sawmills and wood product manufacturers can apply to the Regional Tariff Response Initiative through their regional development agency for liquidity support, pivot project funding, or both, if they meet the eligibility criteria.
Can a trucking company that hauls logs or lumber qualify?
It can, if its core business activities are directly tied to the operations or value chain of exporters in the forestry sector. Each regional agency names this case in its RTRI eligibility criteria.
What happens to cabinet and furniture tariffs in 2027?
On January 1, 2027, the U.S. Section 232 tariff on kitchen cabinets and vanities is scheduled to rise from 25% to 50%, and on certain upholstered furniture from 25% to 30%, according to the Trade Commissioner Service.
What wood products projects can RTRI fund?
Net-new projects with measurable results, such as value-added lines, drying or optimization equipment, automation, certifications and new markets. Land and building purchases are not eligible.
LET'S FIND YOUR NEXT STEP
Tariffs changed the plan.
Let's work on the response.
Tell us what has changed for your business. In a free, one-on-one consultation, we will help you understand your tariff relief funding options and next steps, whether or not you work with us.
Independent advisory by Fundspoke. We are not a government agency. Tariff measures and program terms change often; official sources, your regional agency's current rules and your contribution agreement govern. Your customs broker can confirm how tariffs apply to your products.