Canadian Forest Sector Tariff Exposure Seen as Minimal
Dow Jones
1 hour ago
0659 ET - For Canadian wood products companies, exposure to the new U.S. tariffs should be minimal and manageable, says RBC's Matthew McKellar. In a report, the analyst says that the trade friction primarily hits niche value-added products like engineered wood, paperboard and corrugated boxes. For those, operational flexibilities and shifting where products are produced give Canadian producers a buffer against the worst drag on earnings. Meanwhile, major commodities such as lumber and oriented strand board are completely exempt from the new tariffs, McKellar notes. Still, he says that the tariff environment remains dynamic and there is "significant uncertainty around potential further action by either the U.S. or Canada."
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