Trade tensions between Canada and the United States are intensifying, with direct repercussions on the forest sector in both countries.
In Maine, Woodland Pulp has stopped purchasing fiber and sawmill residuals from New Brunswick in response to higher U.S. tariffs and uncertainty surrounding the new compliance requirements. The Baileyville pulp mill, one of Washington County’s largest employers, has also scaled back operations as a result.
The decision highlights the vulnerability of a supply chain that has operated seamlessly across the Maine–New Brunswick border for decades. A significant share of the fiber harvested in southwestern New Brunswick previously found an outlet at Woodland Pulp, providing a critical market for private woodlots. While large integrated companies in the province retain some flexibility, smaller sawmills, less able to absorb tariff-driven volatility, face a more immediate impact.
The Woodland Pulp mill in Maine. Image source: Woodland Pulp
Maine lawmakers are urging federal authorities in Washington to ease the tariffs, arguing that the region’s forest industry cannot sustain prolonged cost increases. They emphasize that millions of tonnes of wood move across the border each year, forming an interdependent system now under strain.
In Fredericton, the New Brunswick government expects deeper repercussions in 2026 if the tariffs remain in place. Ottawa is preparing a new support package for the sector, though details have not yet been released. In the meantime, industry groups across Atlantic Canada are pushing for a durable resolution to a trade dispute that continues to weigh on rural economies on both sides of the border.
