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Photo Courtesy Mercer Peace River (Image Credit: Photo Courtesy Mercer Peace River)

By Tanner Smith

Federal Government

$20 million to support the “modernization of Mercer Peace River Pulp Ltd.”

Aug 26, 2026 | 4:41 PM

The federal government is helping a Peace region sector combat U.S tariffs.

Following an American announcement to impose additional tariffs that affect Canada’s forestry sector, the federal government put counter-tariffs in effect and is providing $7.5 billion in support funding for affected businesses.

As part of the support funding, the federal government is putting $20 million towards modernizing the Peace River Pulp Mill.

Funds will now be used to lower production costs, reduce emissions, and improve output while strengthening “the mill’s competitiveness in a changing global market.”

“The investment will support upgrades to the mill’s facilities and equipment to improve operational efficiency and enable a shift toward a more profitable mix of hardwood and softwood pulp. Planned improvements include upgrades to heavy black liquor piping, the rebuilding of pulp machine rolls, and improvements to a lime kiln and recovery boiler.”

While a trade war with the U.S. marches on, Canada continues to invest in local economies, with Premier Danielle Smith in Grande Prairie on Wednesday (Aug. 26) to officially open a new Skilled Trades Lab at Northwestern Polytechnic.

by Tanner Smith