U.S. Tariffs Force Temporary Closure of Canadian Manufacturing Plant

RYAM’s Facility in Témiscaming Faces Shutdown

Over 400 workers are affected by the temporary closure of RYAM’s manufacturing facility in Témiscaming, Quebec. The American paperboard manufacturer blames U.S. tariffs for this decision. Operations are scheduled to cease on September 15, impacting 425 employees. Newsweek reached out to RYAM via email for comments.

A spokesperson from RYAM stated the closure results from an unsustainable business environment, deeming continued operations economically unfeasible. The spokesperson emphasized the significant impact of tariffs that rendered the site unsustainable despite numerous efforts to adapt.

Evolving Trade Tensions

Témiscaming Mayor Alain Gauthier, who formerly worked with the company, conveyed the challenges posed by the tariffs to CTV News. He described them as catastrophic for sectors dependent on U.S. markets, calling it an “economic war.”

Trade tensions between the U.S. and Canada escalated after recent negotiations broke down. On August 22, the U.S. imposed tariffs of up to 50 percent on $27.6 billion worth of Canadian goods, affecting various sectors, including agriculture and manufacturing. Existing duties also cover steel, aluminum, and automobiles.

Canadian Prime Minister Mark Carney halted negotiations, asserting that the terms favored by Washington did not align with Canada’s interests. The Canadian government vowed to respond “dollar for dollar” to U.S. tariffs.

Canada-U.S. Trade Conflict

The ongoing trade friction has strained relations since President Donald Trump returned to office in January 2025. Negotiations aimed at reducing tariffs collapsed, leading to U.S. tariffs on Canadian goods, which Washington claimed countered perceived discrimination against American exports.

U.S. Trade Representative Jamieson Greer accused Canada of restricting American alcohol products and favoring European dairy access while limiting U.S. vehicle exports. Greer highlighted Canada’s retaliation against the U.S.’s efforts to rebalance trade.

The White House blamed Canada for negotiation failures, citing “unreasonable demands” from Ottawa. Trump offered Canada preferential U.S. market access, including potential tariff reductions on steel, aluminum, autos, and lumber.

Canada’s Response and Economic Implications

On August 22, Carney declared Canada ready to remove tariffs on specific U.S. imports if the U.S. reduced its duties. However, he deemed subsequent U.S. terms “uneconomic” and unfair, negating benefits for Canada.

The Canadian government announced matching U.S. measures, imposing tariffs of 15 percent, 25 percent, and 50 percent from September 8 on U.S. imports, covering sectors such as steel, dairy, appliances, and electronics. An additional support package of $7.5 billion for affected Canadian workers and businesses accompanied the tariffs.

Carney expressed reluctance over imposing retaliatory tariffs, acknowledging the impact on Canadian costs and choices. He noted the adverse effects on American companies uninvolved in the dispute. Carney emphasized the missed opportunities for cooperation due to the ongoing trade confrontations.

Broader Political Deterioration

The trade dispute coincides with strained political relations between the U.S. and Canada. During his second term in February 2025, Trump imposed increased tariffs on Canadian imports, framing them as responses to migration and fentanyl issues. Canada retaliated with its tariffs.

Tensions heightened when Trump suggested Canada could become the U.S.’s 51st state, an idea rejected by former Canadian Prime Minister Justin Trudeau.

This week, Trump signed an executive order renaming Lake Ontario as Lake America, provoking backlash from Canadians.

Carney remarked on August 21 about the inevitable change in relations with America.

If you have information, contact Newsweek editors Matthew Cannon and Dave Siminoff.