The 50% tariff wall between the US and Canada took effect on August 22, putting roughly $20 billion of Canadian goods, or about 5% of the country’s exports to the US, at risk of becoming borderline unsellable in the American market. Lumber futures fell below $565 per thousand board feet, nearing a five-month low as the escalating trade war weakened demand. A Canadian Federation of Independent Business survey of roughly 1,833 respondents, conducted between July 28 and August 6, found that 90% were concerned about the tariffs, 40% said their products were directly affected, 77% of affected businesses expected revenue to decline, 35% forecast losses of at least 50%, and 78% believed their products would become uncompetitive in the US. The dispute is pressuring Canadian and US forest sectors, small businesses, builders and homebuyers, while US housing starts fell 12.4% in July, driven by a sharp decline in lumber-intensive single-family construction. Canada has announced matching retaliatory tariffs on $20 billion of US goods from September 8, and estimated job losses could reach 90,000 when indirect effects are included.