Donald Trump elected: “a risk of closing sawmills in Quebec”

The forestry industry has been plunged into uncertainty since the election of Donald Trump in the United States. During the campaign, the president-elect promised to impose a 10% tariff increase at the border on several Canadian exports, including lumber. Several foresters already in difficulty fear the worst.

Logging companies are already complaining about paying a 14.54% tax on lumber at the U.S. border. With a Republican administration led by Trump, they anticipate an even worse scenario.

It’s certain that prices are a problem for us, says the senior director at Domtar, Étienne Vézina. If we see an American tax rise towards 30%, there will be difficult decisions to make.

There is a risk of further closure of sawmills in Quebec.

He explains that, for independent Quebec sawmills, price increases like those mentioned by Donald Trump are enough to close sites. Moreover, at Domtar, which has between 4,000 and 5,000 workers in its 24 factories in Quebec, the impact is already being felt.

Two of the company’s factories will have to close for an indefinite period. The sawmills of Rivière-aux-Rats in Mauricie and Maniwaki in Outaouais will cease their activities just before Christmas. More than 500 industry workers will be affected.

It’s always a very difficult decision, admits Étienne Vézina. But at a given moment, when a factory is not profitable, we cannot keep it in operation in the long term. It takes better predictability and favorable market conditions.

The Quebec government is crossing its fingers

The day after the election of Donald Trump, François Legault announced that he would set up a “Quebec–United States working group” to defend the interests of the province. Several ministers will be included to try to develop a strategy to protect the province’s industries.

I think we have to tell ourselves the truth, there are jobs at stake.

The Minister of Natural Resources and Forests, Maïté Blanchette Vézina, wants to be reassuring even if the negotiations promise to be difficult. She recalls that she was in Washington a few months ago to discuss the lumber conflict.

We are in regular discussions with members of the forestry sector to find solutions, she said. We managed to work with the Trump team in 2016 and I am convinced that we will continue to find ways for Quebec to do well.

Forest industry asks for help

The Quebec Forest Industry Council is asking the government for financial assistance. Foresters estimate that two billion dollars belonging to companies are stuck in customs because of tariffs imposed by the Americans. They want to recover these amounts, but in the meantime, they want loans from Quebec.

The most important thing for the industry is predictability. To know where we are going. These are big investmentslaunch it CEO of the Forest Industry Council, Jean-François Samray.

I think we need to realize that the United States is not self-sufficient, it barely produces 65% of its needs. […] They need Canadian wood.

He also points out that taxing wood products including pulp and paper exported to the United States could considerably reduce the purchasing power of American households.

[Les boîtes de carton] are everywhere in the United States on store shelves, whether at Wal-Mart, whether in grocery stores. They are everywhere! underlines Jean-François Samray.

Know how to hold your breath

The Quebec forestry industry points out that a housing shortage is also hitting the United States and sees this as an opportunity to mitigate the threat. An increase in tariffs on Canadian lumber would inevitably affect inflation and the purchasing power of Americans.

We really hope that our governments, both Quebec and federal, will be proactive, take forestry to heart and defend our interests with the new government. [américain] which is set upexplains the senior director at Domtar, Étienne Vézina.