Waska Sawmill Suspends Operations Amid Crippling U.S. Tariffs, Canadian Economic Growth Downgraded
A Quebec cedar sawmill, Waska, has been forced to temporarily suspend operations due to escalating tariffs imposed by the United States, a stark illustration of the growing economic strain on Canadian businesses. The closure underscores a broader trend of economic uncertainty as the International Monetary Fund (IMF) simultaneously revised global economic forecasts upwards while downgrading Canada‘s growth prospects.
The situation at waska highlights the acute impact of U.S. tariffs on Canadian exports. According to Waska’s general director,even at a 15% tariff,American customers struggled to absorb the costs. With tariffs now reaching 45%, sales have fallen to zero, triggering the shutdown. This comes as the IMF acknowledges a global adjustment to the “new commercial situation,” but simultaneously projects slower growth for Canada, signaling a potential ripple effect across the Canadian economy.
The IMF’s latest projections, a revision from its summer outlook, now estimate global growth at 3.2% for 2025 (+0.2%), the United States at 2.0% (+0.1%),and the Eurozone at 1.2% (+0.2%). China’s forecast remains unchanged at 4.8%.However, Canada’s growth estimate has been lowered from 1.6% to 1.2%.
The economic pressures are coinciding with a rising unemployment rate in Canada, now exceeding 7%, indicating the tangible effects of uncertainty stemming from Donald Trump’s trade policies. Experts are increasingly emphasizing the urgency of reaching a trade agreement with the United States to mitigate further economic damage.
“Already, when prices were at 15%, our American customers had a lot of trouble absorbing these costs because they are the ones paying them,” explained Waska’s general director to Radio-Canada. “At 35%, sales have dropped to zero. This resulted in a temporary closure. We again suffered a 10% increase in prices which puts that at 45%. Nothing to help our cause.”
Source: International Monetary Fund
