The Government of Quebec announced a C$60 million [1] program to help provincial sawmills diversify their product lines.

This initiative comes as the region's forestry sector faces a severe economic crisis. The industry is struggling to remain viable under the weight of significant trade barriers that have restricted the flow of lumber to its primary export market.

According to government reports, the crisis was triggered by U.S. import duties of approximately 45% [2] on Canadian lumber. These tariffs have created an unsustainable environment for traditional sawmill operations, forcing the province to intervene to prevent widespread industry collapse.

Industry representative Jean-François Deschênes said the measures are necessary to support businesses and regions throughout the province [3]. The program focuses on enabling mills to move beyond standard lumber products to reduce their reliance on the U.S. market.

Companies such as Groupe Damabois, and various sawmills in the Côte-Nord region, are among those targeted for support [4]. By diversifying their output, these facilities can potentially access new markets or create higher-value products that are less susceptible to specific trade disputes.

The measures were formally announced in a press release dated Feb. 24, 2026 [3]. The funding is intended to provide a bridge for companies attempting to modernize their equipment and shift their production strategies during the ongoing trade conflict.

“The Government of Quebec announced a C$60 million program to help provincial sawmills diversify their product lines.”

This move signals a strategic shift for Quebec's forestry sector, moving away from a historical dependence on the U.S. market. By subsidizing diversification, the government is attempting to insulate the provincial economy from geopolitical trade volatility and the specific impact of high lumber tariffs.