Canada threatens 25%-50% tariffs on U.S. goods, including toilet paper

Canada’s government, led by Prime Minister Mark Carney, revealed a retaliatory tariff schedule that will tax roughly 900 American products at rates between 25% and 50% beginning in September, with toilet paper included on the list. The decision escalates the trade dispute sparked by President Donald Trump’s earlier tariffs on Canadian imports, which have already driven up the price of toilet-paper products. Procter & Gamble reported that those earlier “Liberation Day” duties compelled a 25% price increase on its paper goods last summer, and analysts warn the new Canadian tariffs could further inflate consumer costs.

Although most U.S. toilet paper is domestically produced, manufacturers depend on Canadian timber, and in 2024 the United States imported $328 million worth of toilet paper from Canada, more than from any other nation. Costco’s Kirkland brand, for example, sources much of its paper products from Canada. The White House responded by saying Canada turned down a trade deal that offered extensive market access, and reiterated the administration’s commitment to prioritize American workers and lower household expenses. The dispute highlights the broader economic friction between the two neighbors and its potential impact on everyday household budgets.