GreenFirst Responds to U.S. Tariffs on Canadian Lumber

TORONTO--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) expresses deep concern over the United States government’s decision to impose a 25% tariff on Canadian softwood lumber, which came into effect on Tuesday, March 4. This measure threatens the stability of the Ontario forestry sector, which employs thousands of workers and supports local economies across the province.

“The imposition of this tariff is highly unfortunate and will have a significant impact on the entire industry,” said Joel Fournier, GreenFirst’s CEO. “We are actively working with both provincial and federal governments, as well as industry associations, to develop a support plan for the sector and to ensure that diplomatic efforts to remove these tariffs are accelerated.”

The tariff is expected to raise the price of lumber and other building materials, likely increasing the price of new homes in the United States and further exacerbating the challenges of an already undersupplied housing market. This increase in homebuilding expenses will make homeownership even more unattainable for already financially stretched American homebuyers.

As a 100% Ontario-based Company operating four sawmills in Northern Ontario, GreenFirst directly employs approximately 800 people and plays a crucial role in the province’s economy. The Company remains committed to its long-term vision of becoming a top-quartile producer in North America, as outlined in its capital expenditure plan announced in Q4 2024. However, in response to this recent development, GreenFirst has been proactively preparing strategies to mitigate its impact.

With a strong balance sheet, GreenFirst is well-positioned to navigate these challenges. To ensure financial resilience, the Company will temporarily pause certain strategic capital expenditures until more clarity emerges regarding the tariff’s long-term effects. While GreenFirst’s commitment to operational excellence remains unchanged, a cautious approach to capital allocation will be taken to safeguard the Company’s financial health.

“We urge the federal and provincial governments to take immediate action to support our industry during this challenging time. GreenFirst will continue to monitor the situation closely and will provide updates as more information becomes available,” said Fournier.

About GreenFirst

GreenFirst Forest Products is a forest-first business focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets, proudly operating over 6.1 million hectares of FSC^®-certified public Ontario forestlands (FSC^®-C167905). GreenFirst believes that responsible forest practices, coupled with the long-term green advantages of lumber, provide the Company with significant cyclical and secular advantages in building products.

Forward Looking Information

Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “estimate” or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst’s public disclosure record filed under its profile on www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.