Canada's tariffs on US toilet paper price hikes

Canada will impose a 25% tariff on US toilet paper and other paper products starting September 8, retaliating against US tariffs in the escalating trade war. The measures target about $20 billion of US imports. Canada is the largest foreign supplier of US toilet paper, accounting for roughly 64% of import value in 2024, or about $328 million. While tariffs may not fully pass to consumers, importers absorbing costs could eventually push prices higher, turning the dispute into an inflation issue. The broader trade conflict threatens deeply integrated North American supply chains, with Washington threatening 50% auto tariffs from January 2027. Ottawa's retaliation covers 700 products, plus a C$7.5 billion support package for affected businesses and workers.