Millinocket salmon farm project paused due to tariffs ‘roller coaster’
Great Northern Salmon is pausing its $300 million salmon aquaculture project in Millinocket, citing the economic uncertainty created by the tariffs the Trump administration is imposing on Canadian goods.
CEO Marianne Naess confirmed on Thursday that the project has been paused due to a “volatile and unpredictable tariff situation,” which was first reported by Undercurrent.
The plan to build the land-based recirculating aquaculture system at the former Great Northern Paper mill was most recently estimated to cost about $300 million and was designed to eventually produce 7,500 metric tons of salmon annually. But Naess said in a phone call Thursday that Great Northern Salmon, formerly Katahdin Salmon, can no longer predict the true cost of the project due to the rapidly changing trade policies.
“It’s a roller coaster,” Naess said. “What the rule is today, we don’t know if that’s going to be the same tomorrow.”
The project was expected to create over 100 jobs during construction, and dozens when it was operational. Town officials have previously called the creation of jobs and revitalization of the former mill a “win-win” scenario for the economically challenged region.
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Naess acknowledged that tariffs are impacting a variety of industries, but said they are especially impacting this project because many of the materials and much of the equipment Great Northern Salmon requires are produced outside the United States, largely in Canada and European countries like Norway.
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“There’s no market for it because there’s no industry here in the U.S.,” Naess said. “We have to import it to be able to have U.S. production.”
A trade war with Canada recently escalated, with the U.S. imposing tariffs and Canada retaliating with its own. The two North American allies exchanged about $872 billion in goods and services last year, according to The Associated Press.
But the logistics of the tariffs have been changing by the day. Canada announced on Wednesday that seafood won’t be part of the retaliatory tariffs, as originally planned.
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Naess said they’ve gotten pretty far along in the planning process of the project: Construction was slated to begin next spring, with eggs to be placed in the facility by the spring of 2028 and fish hitting the market in early 2030.
“It’s a great project for Maine and for the U.S., but it needs to be cost-competitive with competition from Iceland, northern Europe and Asia,” Naess said. She said more than 95% of fresh salmon consumed in the United States is imported.
While resuming the project should be simple, when that will be is a big question.
“We just need to ensure that there’s a predictable path forward,” Naess said.
Naess emphasized that the state of Maine — whether it be politicians or the public — has largely supported the project, and their quarrel is solely with federal policies.
“We still believe in Maine as a U.S. hub for aquaculture,” Naess said. “So, we hope it’s possible to get back on track once the situation stabilizes.”
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Tagged: aquaculture, maine economy, tariffs
Drew is the night reporter for the Portland Press Herald. He previously covered South Portland, Scarborough and Cape Elizabeth for the Sentry, Leader and Southern Forecaster. Though he is from Massachusetts,. More by Drew Johnson
