The Quebec government announced on Tuesday a $60 million investment aimed at diversifying sawmill operations across the province. The funding is intended to help the regional forest sector adapt to a 45 percent tariff imposed by the United States on Canadian lumber, a measure that has sharply reduced export earnings.
The allocation will be directed toward projects that expand the range of wood products manufactured in Quebec, reducing reliance on traditional lumber exports that are now subject to the high U.S. duty. By encouraging sawmills to process timber into value‑added items such as panels, engineered wood and specialty products, the province hopes to mitigate revenue losses and sustain employment in forest‑dependent communities.
Officials described the move as a response to a broader forest crisis that has been amplified by the tariff. The crisis includes declining market access, pressure on timber prices and concerns about the long‑term viability of sawmills that focus primarily on raw lumber. The $60 million program is part of a provincial strategy to strengthen the sector’s resilience and to ensure that Quebec’s forest resources continue to generate economic benefits despite the trade barrier.
While the exact distribution of funds has not been detailed, the investment is expected to be rolled out over the coming fiscal year, with eligibility criteria set for sawmills that can demonstrate a shift toward diversified production. The initiative aligns with Quebec’s broader economic priorities of modernizing industry and protecting jobs in regions heavily dependent on forestry. By offsetting the impact of the 45 percent U.S. tariff, the province aims to preserve its position as a major player in North America’s wood market.