Trump’s tariffs could shut this Canadian town. Its residents are fighting to save it

by | Oct 31, 2026 | Top Stories

Trump's tariffs could shut this Canadian town. Its residents are fighting to save it

Témiscaming, a Quebec town built around a paper mill over a century ago, faces an existential crisis following the closure of its primary employer. The mill, which employed approximately 360 workers, ceased operations after trade negotiations between Canada and the US broke down and President Donald Trump implemented additional tariffs on Canadian goods. Workers have been partially supported through government tariff-relief payments, but the long-term outlook remains uncertain.

The economic impact on the community has been immediate and severe. Property values have declined sharply, and for-sale signs have appeared throughout the town’s residential areas. Beyond the mill workers themselves, concerns exist about whether essential service providers such as grocery store employees and hospital staff will remain in the community. Local contractors have already begun reducing their workforces, with one reporting layoffs of 13 employees as the economic effects ripple through related industries including sawmills and trucking operations.

Residents are exploring options to prevent the town’s further decline. In early October, the American owner RYAM implemented an indefinite economic shutdown of the facility. Local workers and union leaders are attempting to organize a coalition to purchase the mill back from RYAM, which acquired it in 2017. This effort draws inspiration from 1973, when workers and managers successfully purchased the mill during a previous closure threat, eventually building it into Tembec, an international company with operations across North America and France.

At the national level, Canada’s economy has remained relatively stable, with unemployment holding around 6.5% and consistent though modest growth. However, specific industries directly targeted by US tariffs—including steel, aluminium, automobiles, and lumber—have experienced concentrated hardship. Government responses have varied by sector, with nearly C$9 billion announced recently to support Ontario’s steel and auto industries. The government has made C$400 million available to support the forestry sector and established programs to assist tariff-impacted businesses. Local officials argue this assistance has been insufficient and uneven, with some questioning whether the town and Quebec’s forestry industry have received adequate government support compared to other affected sectors.

Article Attribution | Read More at Article Source

Article summary produced by Claude AI