Creating jobs and opportunity in Northern Ontario
Township vows support for workers while Section 232 duties deepen uncertainty for Northwestern Ontario lumber
IGNACE / EAR FALLS, ON — The sawmill in Ear Falls is shutting down for an indefinite period, citing the compounding impact of U.S. softwood lumber tariffs and deepening market uncertainty for shipments into the United States. The closure lands as Ear Falls confronts its own indefinite shutdown, a “heartbreaking” development for a town that has relied on mill paycheques for generations.
“The announcement of an indefinite shutdown at the Ear Falls sawmill is heartbreaking news for our town. For decades, the mill has provided stability, good jobs, and a sense of pride for the people of Ear Falls.”
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Creating jobs and opportunity in Northern Ontario
Township vows support for workers while Section 232 duties deepen uncertainty for Northwestern Ontario lumber
IGNACE / EAR FALLS, ON — The sawmill in Ear Falls is shutting down for an indefinite period, citing the compounding impact of U.S. softwood lumber tariffs and deepening market uncertainty for shipments into the United States. The closure lands as Ear Falls confronts its own indefinite shutdown, a “heartbreaking” development for a town that has relied on mill paycheques for generations.
“The announcement of an indefinite shutdown at the Ear Falls sawmill is heartbreaking news for our town. For decades, the mill has provided stability, good jobs, and a sense of pride for the people of Ear Falls.”
“To the workers and families affected, please know that our entire community stands with you. The uncertainty you are facing is felt by all of us. We recognize the toll this will take on households, local businesses, and the broader community.”
The Township says it is already in contact with the Province of Ontario and will “identify all available supports and explore every possible path forward,” noting that Premier Doug Ford and Kevin Holland, Parliamentary Assistant to the Minister of Northern Development, have personally reached out with commitments to help.
“Ear Falls has always shown resilience and strength in the face of challenges. We will continue to stand together and advocate for solutions that protect our people and our future.”
Why now: Tariffs stack on top of a volatile market
The shutdowns follow the U.S. administration’s Section 232 “national security” tariff on lumber—10% on timber and lumber—announced this fall, stacked on top of existing anti-dumping and countervailing duties that already average in the mid-30% range for many Canadian producers. As NetNewsLedger reported on September 30, those combined border charges can push the effective cost on Canadian shipments above 45%, amplifying pressure on mills across Northern Ontario.
NNL’s September analysis also flagged knock-on risks for trucking, maintenance shops, and the integrated “chips, sawdust, biomass” loop that keeps sawmills and paper mills running across the Highway 11/17 corridor—stresses now moving from warning to reality as curtailments spread.
What it means on the ground
Jobs & local spending: Mill down-time ripples through logging contractors, fuel suppliers, fabrication and repair shops, and retail in Ear Falls, Dryden, Kenora and Red Lake.
Municipal budgets: Reduced industrial activity pressures tax bases and increases demand for family supports.
Housing & orders: Higher U.S. border costs can lift American lumber prices, yet still leave Canadian mills with thinner margins and stop-start order cycles—hard on crews and cash flow.
The Northwestern Ontario Municipal Association (NOMA) is expressing deep concern following the announcement of an indefinite shutdown at the Ear Falls sawmill. The closure represents a significant economic and emotional blow to the community and the wider region.
For decades, the Ear Falls sawmill has been a cornerstone of the local economy—providing stability, good-paying jobs, and a sense of pride to families across Northwestern Ontario. Its indefinite closure will have immediate and lasting impacts on workers, local businesses, and surrounding municipalities that depend on the forestry sector.
Rick Dumas, President of NOMA and Mayor of Marathon, said: “The news from Ear Falls is heartbreaking. The sawmill has long been a source of pride and prosperity for Northwestern Ontario. This is not just a local issue—it affects the entire region. All levels of government must work together to support affected workers and ensure the long-term stability of the forestry sector.”
What support could look like
Town officials say they’re pressing for rapid access to EI and top-ups, bridge financing for small businesses, training and redeployment programs, and coordinated freight/logistics solutions to keep contractors viable until markets stabilize. At the federal level, producers and unions continue urging Ottawa to challenge duties and pursue a durable softwood settlement, echoing recommendations outlined in NNL’s September report. NetNewsLedger
Can Canada pivot beyond the U.S.?
While the United States remains the primary market for Northwestern Ontario lumber, companies are exploring diversification, including European buyers. That path requires tight traceability and sustainability documentation to meet evolving EU rules, plus competitive shipping arrangements—steps that may not replace U.S. volumes overnight but can reduce single-market exposure over time.
What’s next
Ear Falls leaders say the immediate priority is supporting families and keeping skilled people in the region while advocating for tariff relief and market certainty. NetNewsLedger will continue to track restart timelines, worker supports, and new market prospects for Northwestern Ontario’s forest sector.
Background reading: “A Tariff Too Far”: U.S. Slaps Section 232 Duties on Canadian Wood—Ontario and Northern Leaders Warn of Crisis (Sept. 30, 2025), NetNewsLedger. NetNewsLedger