Trump's 50% Tariffs on Canadian Tissue Stock May Raise Costs for U.S. Manufacturers

The United States imposed a 50% tariff on Canadian toilet and facial tissue stock after trade talks stalled, according to officials. The levy, which took effect last weekend, targets large rolls and sheets used by U.S. converters to produce finished consumer products.

North Carolina State University professor Ronalds Gonzalez, who studies pulp and paper supply chains, said the tariff could lift the cost of Canadian long fiber by about $735 per ton, roughly an 11% increase. Because about 15% of the fiber used in bath tissue is sourced from Canada or the northern United States, manufacturers may see raw-material expenses rise accordingly. Paper towels, which rely more heavily on the Canadian long fiber, could face cost increases of up to 31%.

"Let’s not talk about price. Let’s talk about cost, because the market in the US is highly competitive," Gonzalez said.

Gonzalez noted that manufacturers might absorb part of the higher costs rather than pass the full amount to shoppers, and that any price impact could appear within two months, given typical inventory levels of 45 to 60 days. Companies could also substitute Canadian fiber with pine-based fiber from the southeastern United States, though this may affect product softness and performance.

The tariff does not apply to finished toilet paper, but it does affect the imported parent rolls that U.S. firms convert. In 2024, the United States imported roughly 353,000 tons of tissue stock from Canada, representing about a quarter of its total tissue-stock imports, and $140 million in value for that category in 2023. Canada has announced retaliatory tariffs of 25% to 50% on certain U.S. goods, including tissue stock, beginning Sept. 8.

Analysts expect that if manufacturers fully pass the added expense to consumers, a 12-pack of a leading toilet-paper brand could rise from about $13 to $14.50, while a 12-pack of paper towels might increase from roughly $20 to $26.