US and Canada impose 25%-50% tariffs on paper products as trade dispute escalates

The United States and Canada have entered a new phase of their trade dispute, with both governments announcing tariffs of 25% to 50% on nearly 900 American and Canadian products effective 8 September. Among the items targeted are paper products such as toilet paper and facial tissue, which Canada said would face tariffs of up to 50% in response to a 50% tariff imposed by Washington.

Although much of the United States' toilet-paper supply is produced domestically, manufacturers rely heavily on Canadian lumber for raw material. The World Bank reported that the United States imported $328 million worth of toilet paper from Canada in 2024, making Canada the leading exporter of the product to the U.S. Retail chains, including Costco, source a significant share of their paper goods from Canadian suppliers.

"The fundamentals are good. I don’t think this is going to affect anything," said Jamieson Greer, the U.S. trade representative, emphasizing the administration’s view that the tariffs will not harm American consumers.

The tariff round-up also includes Canadian liquor, which is subject to a 50% duty, and U.S. dairy, cheese, fish, seafood and automotive parts, with duties ranging from 25% to 50%. Canadian Prime Minister Mark Carney pledged to match U.S. tariffs "dollar for dollar" and urged provincial leaders to consider reinstating American liquor on store shelves.

Analysts note that the measures highlight the deep economic interdependence of the two countries and could lead to higher prices for a variety of consumer goods, though officials on both sides downplay the impact on everyday shoppers.