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American Tariffs Expose Vulnerability of Canadian Paper Mill

Témiscaming residents face economic uncertainty as US trade policies force indefinite shutdown of local mill.

EconomyPublished October 31, 2026 at 2:39 AM
An image showing a man, Stephane Lefebvre, outside a small building with a sign that reads 'UNIFOR Syndicat Quebec'. The man is older with grey hair and a beard, is looking right at the camera and is wearing a black zip up jacket on top of a dark grey polo shirt.

The town of Témiscaming, Quebec, is grappling with an existential economic crisis after the indefinite shutdown of its primary employer, a century-old paper mill.

The closure follows the imposition of 50% tariffs by the United States on Canadian wood and paper products, a move President Donald Trump maintains is necessary to protect American manufacturing and domestic jobs. Approximately 75% of the mill's production is exported to the US market.

With the facility now idle, 360 employees are currently out of work, relying on government tariff-relief payments. Local residents and union leaders are now attempting to organize a coalition to purchase the plant from its American owner, RYAM, which initiated the shutdown in October.

While the Canadian government has pledged $400 million to support the forestry sector and assist businesses in pivoting away from US markets, local officials and workers argue that Ottawa's response has been insufficient.

Mayor Alain Gauthier criticized the federal government's approach as inadequate, calling for stronger retaliatory measures against American imports. As the town faces the prospect of becoming a ghost town, workers are looking toward potential political shifts in the United States and lobbying efforts for a resolution.

Meanwhile, the threat of winter temperatures poses an additional risk to the idle facility's equipment, further complicating hopes for a future reopening.

Tags

economytradecanadatariffsmanufacturing

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