Softwood lumber producer Canfor Corp. (TSX:CFP) continues to feel the impact of soaring U.S. tariffs and a weak global market.

The Vancouver-based firm reported a $172-million net loss for the third quarter of 2025 last Thursday—marking its third consecutive quarterly loss this year.

"The ongoing global economic and trade uncertainty, in conjunction with punitive U.S. softwood lumber duties, led to persistently weak market conditions and subdued demand," said Susan Yurkovich, Canfor's president and CEO, in a statement.

The U.S. has imposed anti-dumping and countervailing duties on Canadian softwood lumber. The rate for most producers is around 35 per cent, while some companies face higher rates, including Canfor, which has a combined rate of 47.65 per cent.

Global economic uncertainty has also weighed on the pulp and paper market, affecting pricing and adding challenges to Canfor’s pulp business this quarter, Yurkovich said.

"While our ongoing efforts to enhance reliability and productivity have partially mitigated these pressures, we expect these economic challenges to persist," she said.

Canfor reported an operating loss of $208.3 million for the quarter, largely driven by the lumber segment, which posted an operating loss of $182.2 million.

In addition to higher U.S. tariffs, persistent pressure on North American housing markets amid affordability challenges and economic uncertainty, and the regular summer downtime in Europe, have dampened lumber demand, according to the company.

Meanwhile, the Asian market also faces challenges, including supply chain disruptions and continued "significant pressure" in China’s real estate sector despite the Chinese government's stimulus efforts, noted the company.

“We remain focused on the areas within our control—ensuring safe and efficient operations, maintaining disciplined cost management and delivering quality products to our customers,” said Yurkovich.

“We are well positioned to leverage our globally diversified operating platform when market conditions improve."

Canfor reported a $605.7 million net loss in 2024.

Source: biv.com