Northern Ont. sawmills idled ‘indefinitely’ because of U.S. tariffs

Interfor announced April 23 it is closing two Ontario sawmills in Nairn Centre and Gogama 'indefinitely' because of U.S. tariffs. (File)

Interfor has announced it is indefinitely curtailing operations at its facilities in Nairn Centre and Gogama facilities due to weak market conditions.

While the company hasn’t said how many workers will be affected, Sudbury East-Manitoulin-Nickel Belt MP Jim Bélanger said in a statement April 23 that the decision “is expected to result in the loss of more than 200 good-paying forestry jobs beginning in early June.”

In an email to CTV News, Interfor spokesperson Svetlana Kayumova said the lumber market has been hit hard by tariffs imposed the United States as part of its trade war with Canada.

U.S. ‘trade actions’

“Like many others in our sector, we are navigating a combination of persistent market headwinds and the continued impact of U.S. trade actions, including softwood lumber duties,” Kayumova said.

“These pressures have made it increasingly difficult to operate certain facilities in a sustainable way. We recognize the impact this has on our employees, their families, and the broader community, and we are working with these stakeholders as this decision is implemented.”

U.S. softwood lumber tariffs are 35 per cent, although recent reports have them being lowered to 25 per cent in August.

On Thursday, Canadian Prime Minister Mark Carney said tariffs on forestry products imposed by the U.S. are a direct violation of existing trade agreements.

But in his statement, Bélanger said the fault lies with the federal government’s failure to get the U.S. tariffs lifted.

“These closures are devastating for workers, their families, and our region,” he said in the statement.

“The federal government’s inaction on softwood lumber tariffs is pricing Canadian lumber out of the market and putting northern Ontario jobs at serious risk.”

Bélanger called on the federal government “to intensify efforts to reduce tariffs and work with industry and communities to stabilize the forestry sector and prevent further job losses.”