Canada Lumber Aid Inflames US Subsidy Claims, Industry Says

A worker operates a log grapple at a sawmill in Chertsey, Quebec.

Photographer: Christinne Muschi/Bloomberg

The US lumber industry says new financial support pledged by Canada to domestic forestry companies risks deepening the neighbors’ long-running trade dispute, and may result in yet more import taxes.

Last week Prime Minister Mark Carney promised as much as C$1.2 billion ($870 million) in loan guarantees, grants and contributions for Canadian sawmills to pursue product development and market diversification — in response to what he said were unjustified US import taxes.