Economy

Canadian Town Fights to Save Paper Mill Amid Trump Tariffs

Canadian Town Fights to Save Paper Mill Amid Trump Tariffs

By Salma El-Sakka

Residents of Témiscaming, Quebec, are racing to save their community's paper mill after U.S. tariffs imposed by President Donald Trump forced an indefinite shutdown, putting 360 workers out of a job and threatening the town's economic survival.

Mill shutdown devastates local economy

The mill, owned by American company RYAM, went into an "economic shutdown" in early October after trade talks between Canada and the U.S. broke down. The facility produces paperboard for frozen-food packaging and scratch-off lottery tickets, sending roughly 75% of its output to the United States. With the mill idle, property values have plummeted and "For Sale" signs dot the streets. Residents fear a domino effect that could drive away essential workers, from grocery clerks to doctors.

Community seeks to buy back plant

Workers and locals are mobilizing to purchase the mill from RYAM, echoing a 1973 effort when employees bought the facility and formed Tembec, a Quebec-owned company. Union leader Stéphane Lefebvre, whose father and grandfather worked at the mill, said the group needs significant financial backing from Prime Minister Mark Carney's government and the Quebec government to succeed. "We're hoping that lightning will hit twice," Lefebvre said.

Government response and trade tensions

Mayor Alain Gauthier called the U.S. tariffs "a bomb to shut down our manufacturing in Canada" and urged Ottawa to impose retaliatory duties on U.S. board products. The federal government has allocated $400 million for the forestry sector in rural areas and launched a program to help tariff-hit businesses access cash flow. Industry Minister Mélanie Joly's office said officials are "actively working with all parties involved to find a viable solution."

Broader industry impact

The 50% U.S. duties on about C$28 billion of Canadian goods, including wood and paper products, have rippled through the regional forestry industry. A local contractor said he has already laid off 13 people. While Canada's national unemployment rate has held steady near 6.5%, the tariffs have created pockets of deep pain in sectors like lumber, pulp, and paper.

Hope rests on political pressure

Some residents are pinning hopes on the upcoming U.S. midterm elections to pressure Trump to ease tariffs. The administration recently lifted some duties on Canadian goods after lobbying from Republican Senator Susan Collins of Maine, but those changes do not cover products from the Témiscaming mill. Workers worry that winter's sub-zero temperatures could damage idle equipment, making a restart even harder. "We're in Game Seven right now," Lefebvre said. "We're gonna play till the last whistle."

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