The United States and Canada have entered a trade war after negotiations between the two countries broke down last weekend. Canadian Prime Minister Mark Carney has pledged to match US tariffs and announced that nearly 900 American goods will face tariffs of 25% to 50% starting on 8 September.
Paper products are among the sectors expected to be significantly affected. Canada plans to impose tariffs of 25% to 50% on "toilet paper or face tissue stock" from 8 September, in response to a 50% tariff from Washington DC. While American toilet paper is often made domestically, it relies heavily on Canadian raw materials.
The US has also introduced 50% tariffs on Canadian liquor, including brands such as Crown Royal and Canadian Club, and on most Canadian dairy products, with the exception of cheese. In retaliation, Canada has imposed a 50% tariff on American dairy products and a 25% tariff on American cheese.
Additionally, Canada has introduced a 25% tariff on American fish and seafood, including frozen lobster. The US has a 25% tariff on Canadian cars and auto parts, with a threat to double it to 50% if a deal is not reached by 1 January 2027.