Canadian Town Fights for Survival After US Tariffs Hit Paper Mill

The small Quebec town of Témiscaming, built over a century ago around its paper mill, is facing an uncertain future after the mill indefinitely ceased operations due to U.S. tariffs. The mill, the town's primary employer, shuttered in early October, leaving 360 workers unemployed and sparking fears of the community becoming a "ghost town."

American owner RYAM implemented an "economic shutdown" of the mill following the breakdown of trade talks between Canada and the U.S., which led to President Donald Trump imposing tariffs of up to 50% on various Canadian goods, including pulp and paper products. Approximately 75% of the Témiscaming mill's production is exported to the U.S.

Residents feel the tariffs are a "personal attack" on their way of life. Property values have fallen, and many worry that essential service workers will leave, further devastating the local economy. The economic fallout could also impact related industries, such as sawmills and trucking, with one local contractor already laying off 13 employees.

A History of Resilience

The town has faced a similar crisis before. In 1973, when the mill's then-owner threatened closure, local workers and managers united to purchase the plant, forming the company Tembec. Now, workers and union leaders are mobilizing a coalition to buy the mill back from RYAM, which acquired it in 2017. However, they acknowledge they will require significant financial support from the Canadian federal and Quebec provincial governments.

"We're hoping that lightning will hit twice," said Stéphane Lefebvre, a union leader whose father and grandfather also worked at the mill. He believes that supporting the town's bid to buy back the mill would align with Prime Minister Justin Trudeau's pledge to support Canadian workers.

Government Response and Calls for Action

While the national unemployment rate has remained relatively stable, specific industries have experienced significant pain. Témiscaming Mayor Alain Gauthier criticizes the Canadian government's response as inadequate, likening it to fighting an economic war with "kid's water guns." He advocates for retaliatory tariffs on U.S. products entering Canada.

A spokesperson for Industry Minister Mélanie Joly stated that the government has allocated $400 million to support the forestry sector in rural and remote areas and has a program to help businesses impacted by tariffs access cash flow. The government is "actively working with all parties involved to find a viable solution to the issues facing the company," the spokesperson added.

Other industries, such as steel and automotive, have received significant government support. In contrast, some in the forestry sector feel their plight has been overlooked. Sébastien Lemire, the local Member of Parliament, expressed concern over the perceived inaction by the federal government.

Residents are also looking to the upcoming U.S. midterm elections for potential relief, hoping political pressure might lead Trump to ease some tariffs. However, recent tariff adjustments on Canadian goods have not applied to products from the Témiscaming mill. With winter approaching, there is urgency to find a resolution before the cold weather could potentially damage the idle equipment, making future reopening even more challenging.

"We're in Game Seven right now," Lefebvre said. "We're gonna play till the last whistle."