Canada's retaliatory tariffs on U.S. paper products could spark another toilet-paper shortage
Washington imposed a 50% tariff on $20 billion of Canadian goods, prompting Canada to match with duties on U.S. toilet paper and other paper items that take effect on Sept. 8.
Late-August trade negotiations between the United States and Canada fell apart, leading Washington to apply a 50% tariff to about $20 billion of Canadian merchandise under Section 338 of the Tariff Act of 1930. In retaliation, Prime Minister Mark Carney pledged a dollar-for-dollar response, unveiling tariffs on close to 900 American goods that will start on Sept. 8. Among the hardest-hit items are paper products: a 25% duty on U.S. toilet paper and facial tissue, and a 50% duty on paper towels, napkins and raw wood pulp.
Canada also imposed 50% duties on most U.S. dairy and 25% on fish and seafood, drawing criticism from Senator Susan Collins. The dispute adds pressure to an already volatile consumer-price environment, with companies like Procter & Gamble warning of higher costs and the American Forest & Paper Association urging shoppers not to stockpile.
Why it matters
The tariffs could raise household paper-product prices and influence voter sentiment ahead of the U.S. midterms.
How this story developed
- Aug 24 Trump threatens 50% tariffs on Canadian vehicles and parts starting 2027
- Aug 25 Canada is preparing a counter‑tariff schedule to be unveiled in early September.
- Aug 25 Canada announced retaliatory tariffs to begin on Sept 8.
- Aug 26 Retailers have begun removing U.S. wines and spirits from shelves as part of the boycott campaign.
- Aug 27 The United States began reviewing possible bans on Canadian imports under Section 338.
- Aug 29 Canada set a 25% levy on certain American vehicles and matched the U.S. 50% level on steel and aluminium, also targeting plywood, screws and other timber items.
- Aug 30 Donald Trump posted an AI-generated clip showing himself swapping a Lake Ontario sign for a "Lake America" banner, while tensions over his tariffs on Canada continue.
- Aug 31 Trump urged Canadian firms to relocate to the United States and labeled Canadian leadership the worst he has encountered.
- Aug 31 Trump warned the duty on Canadian automobiles will rise to 50% on Jan. 1 and offered tariff relief to firms that relocate to the United States.
- Aug 31 Mark Carney described the dispute as an attack and said Canada must respond as if at war.
- Sep 1 Voters in Beaches-East York, Chicoutimi-Le Fjord and North Vancouver-Capilano will decide three federal seats tonight, a key gauge of Prime Minister Mark Carney's government as a U.S. trade dispute escalates.
- Sep 1 Liberals have now won all three contested ridings.
- Sep 3 Apple Maps switched to the new lake name for U.S. users.
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