Northern Ontario town joins call to bolster steel, lumber sectors

Mattawa town council unanimously passed a motion urging the province to bolster steel and softwood lumber industries amid U.S. tariff threats.

A northern Ontario municipality is adding its voice to growing demands for the provincial government to fortify the region’s cornerstone industries as they brace for the impact of ongoing trade hostilities with the United States.

Town council in Mattawa has unanimously passed a motion urging the province to introduce stronger protections for the steel and softwood lumber sectors. The move follows a similar resolution passed by the Township of Nairn & Hyman in early December, reflecting escalating anxiety among northern communities heavily reliant on these industries.

Mattawa Mayor Raymond Belanger said the local economy remains deeply tied to forestry, making the threat of U.S. tariffs particularly acute.

“We still have a lot of people that depend, in Mattawa, on the forestry industry,” Belanger told CTV News in an interview Monday.

The community has already weathered major industrial closures, which Belanger noted have had lasting repercussions. He pointed to the 2023 shutdown of the Domtar pulp and paper mill in Espanola, which displaced 450 workers, and the closure of the Tembec sawmill in Mattawa itself in 2009. At the time of its closure, the sawmill was the town’s dominant employer, with a workforce exceeding 500 people.

“That really set us back a few paces,” he said.

The renewed vulnerability comes as the steel and lumber industries find themselves on the front lines of a trade war initiated by U.S. President Donald Trump. The U.S. government imposed 50 per cent tariffs on Canadian steel last year. Meanwhile, duties on softwood lumber, originally set at 35 per cent, were increased to 45 per cent in October.

Dave Plourde, president of the Federation of Northern Ontario Municipalities (FONOM) and mayor of Kapuskasing, acknowledged the deep-seated frustration among northern communities that were built on the back of these resources.

In response to the motion, the Town of Mattawa is sending letters requesting support to all levels of government, as well as to the ministers of natural resources and northern development, and all 444 municipalities across Ontario.

Belanger has signalled a willingness to back provincial retaliatory measures, referencing Premier Doug Ford’s tough stance on the dispute.

“Our premier says, ‘Everything’s on the table,’” he said.

“We want to keep Ontario strong and do our part.”

FONOM recently praised the federal government for actions taken in late November to shield domestic producers. At that time, Ottawa moved to tighten tariff-rate quotas on foreign steel imports, redirecting roughly $850 million in demand to Canadian manufacturers. The government also allocated $500 million in new financing for softwood lumber firms, paired with a $500 million expansion of the Business Development Bank of Canada’s softwood lumber guarantee program.

Plourde emphasized the need for readiness at the community level to navigate the ongoing challenges.

“We’re making sure that we’re firing on all cylinders and making sure that our smaller communities are ready to adapt and to take on the challenge,” he said.

Mattawa’s resolution specifically requests that the province implement “additional financial, regulatory, and policy-based supports” to ensure the steel and lumber sectors remain competitive and resilient against persistent tariff pressures.

Councillor Fern Levesque framed the request as a necessary investment in the region’s workforce.

“If we can save northern jobs, then it’s worthwhile to give a little to make a little,” Levesque said during the council meeting last week.

Data from the Government of Ontario underscores the scale of the industries at stake. The province is home to Canada’s three largest integrated steel producers and accounts for over 80 per cent of all steel manufactured in the country. In 2023, that contributed to a significant portion of the national total of 12.1 million tonnes produced, with the sector directly employing more than 17,000 people.

The forestry and lumber industry is an even larger employer, supporting approximately 128,000 jobs, many of which are in Indigenous, rural and northern communities. According to the Ontario Forest Industries Association, the sector has invested over $4.6 billion in the province since 2018. The association also states that 97 per cent of Ontario’s forest product exports are destined for the U.S., warning that a 25 per cent ‘Trump tariff’ would represent an impact of roughly $2 billion CAD per year.