Quebec mill town fights for survival as US tariffs idle century-old paper plant
The indefinite shutdown of Témiscaming's paper mill, triggered by 50% US tariffs on Canadian wood and paper products, has left most of its 360 workers idle and residents scrambling to buy back the plant from its American owner.
BBC World
The town of Témiscaming, Quebec, was built more than a century ago around its paper mill and the surrounding forests of pine, birch, spruce and fir. Now that mill, the community's main employer and economic anchor, sits idle after trade talks between Canada and the United States collapsed and President Donald Trump imposed new tariffs on Canadian goods.
In August, following the breakdown in negotiations, Washington placed 50% duties on roughly C$28bn of Canadian products, including wood and paper goods such as pulp, stationery and boxes. Canada responded with its own dollar-for-dollar counter-tariffs. The Témiscaming mill, which produces paperboard used in frozen-food packaging across North America and in scratch-off lottery tickets, sends about 75% of its output to the United States. In early October, its American owner, RYAM, which bought the plant in 2017, began an "economic shutdown" for an indefinite period.
Most of the mill's 360 employees are out of work, sustained for now by partial pay through government tariff relief. Property values in the town fell almost overnight, and for-sale signs have appeared on many of its modest middle-class homes. Residents fear that grocery clerks, doctors at the small local hospital and other essential workers could be next to leave. "If the mill goes down, it'll turn into a ghost town," said Ronnie Raymond, who comes from a family of mill workers. Nadine Suley, a resident preparing for moose hunting season, said the tariffs feel like "a personal attack" and that the mill is not just a job but "our home".
The town has faced a similar existential threat before. In 1973, the mill's then American owner threatened to close it, prompting workers and managers to join together and purchase the operation themselves. They built it into Tembec, a Quebec-owned international company with operations across North America and France. Frank Dottori, now in his 80s and retired in Témiscaming, was an engineer instrumental in that effort, which saw employees take a 10% pay cut to fund the buyout. He went on to become chief executive. Dottori said today's workers need an equally bold leader and that lifting the US tariffs is essential to restoring the mill's viability.
Workers are now trying to repeat history, organising a coalition of locals to buy the plant back from RYAM. "We're hoping that lightning will hit twice," said Stéphane Lefebvre, a mill employee and union leader whose father and grandfather also worked there. He argued the bid cannot succeed without significant help from Prime Minister Mark Carney's government or Quebec, whether through tariff relief or financial support. Suley said backing the purchase would allow Carney to fulfil his pledges to support Canadian workers and buy local. In an email to the BBC, RYAM declined to comment on a potential sale or any prospective buyers.
Nationally, Canada's economy has largely weathered the trade war, with unemployment steady at around 6.5% since the tariffs began, but sectors hit directly by duties of up to 50%, including steel, aluminium, automobiles and forestry, show deep pockets of pain. Lefebvre said a similar job losses in major cities would dominate the news and pressure governments to act. This month, Industry Minister Mélanie Joly threatened Stelco, one of Canada's largest steelmakers, with financial penalties or a forced asset sale over planned layoffs of some 500 workers. Last week, Carney and Ontario Premier Doug Ford announced nearly C$9bn ($6.4bn; £4.8bn) to help Ontario's steel and auto sectors modernise and find new markets.
Some in Témiscaming feel forestry has taken a back seat to those industries. A spokesperson for Joly said the government has made $400m available to support the forestry sector in rural and remote areas and launched a programme helping tariff-affected businesses manage cash flow as they pivot away from US markets. On the mill specifically, the spokesperson said Ottawa is "actively working with all parties involved to find a viable solution" while responsibly managing public funds. Sébastien Lemire, the town's Bloc Québécois MP, said he is very concerned about what he called inaction by the Carney government.
Mayor Alain Gauthier, who does not blame RYAM for its decision, called the US tariffs "a bomb to shut down our manufacturing in Canada" and wants Ottawa to impose its own duties on American board products entering Canada tariff-free. "We feel we got into a war with kid's water guns to fight back," he said. Some residents are pinning hopes on the upcoming US midterm elections to pressure Trump, whose approval ratings have slipped in polls. Last week, some tariffs on Canadian goods were lifted after lobbying from Maine Senator Susan Collins, who is running for re-election in November, though those changes do not cover the Témiscaming mill's products.
Time is short. Residents worry that sub-zero winter temperatures could freeze equipment at the idle plant, causing damage that would make reopening even harder. Lefebvre said he remains committed to local ownership regardless of the outcome. "We're in Game Seven right now," he said. "We're gonna play till the last whistle."