A paper mill in Témiscaming, Quebec, has suspended operations indefinitely following the imposition of 50% U.S. tariffs on Canadian wood and paper products. The mill, owned by the U.S.-based company RYAM, is the primary employer in the town of approximately 2,800 people and serves as its central economic anchor.
The closure followed the breakdown of trade negotiations between Canada and the United States in August 2026. In response to the breakdown, the Trump administration placed 50% duties on approximately C$28 billion of Canadian goods, including pulp, stationery, and paperboard. Canada subsequently responded with "dollar-for-dollar" counter-tariffs on U.S. imports.
Approximately 360 employees at the mill are currently out of work, though many are receiving partial pay through government tariff-relief programs. Local residents and union leaders, led by Stéphane Lefebvre, have begun mobilizing a coalition to attempt a local buyout of the plant. A similar worker-led buyout occurred in 1973 when a previous American owner attempted to close the facility.
Mayor Alain Gauthier has characterized the tariffs as a direct blow to Canadian manufacturing and has called for the Canadian government to retaliate by placing duties on U.S. board products. While the administration of Prime Minister Mark Carney and Ontario Premier Doug Ford recently announced C$9 billion ($6.4 billion) in support for the steel and auto sectors, local officials in Témiscaming expressed concern that the forestry industry is receiving less attention and support.
The 50% tariff specifically impacts products like the paperboard produced in Témiscaming, which is used for frozen-food packaging and lottery tickets across North America. Approximately 75% of the mill's output is typically exported to the U.S. market. Without a resolution, the idle equipment faces the risk of damage from sub-zero winter temperatures, which residents say would make a future reopening more difficult and costly.
What happens next: Local organizers are seeking financial support from the Quebec and federal governments to facilitate a buyout, though the government has not yet committed to a specific plan for the Témiscaming site beyond a general $400 million fund for the rural forestry sector. Residents are monitoring the upcoming U.S. midterm elections in November, hoping political pressure may lead to a reduction in trade barriers. RYAM has declined to comment on a potential sale or prospective buyers for the facility.