Paper and Tissue Importers Face 25–50% Tariffs on U.S. Goods

Canadian importers of U.S.-made tissue and converted paper products are preparing for a sharp change in landed costs. Counter-tariffs scheduled to begin September 8 place a 25% duty on U.S. toilet paper and several hygiene-paper products. Some facial-tissue stock, notebooks, binders, folders and other school or office paper products face a 50% rate.

The timing matters for distributors and retailers because the duties arrive while back-to-school inventory is moving through the market. Goods already contracted or in transit may land with a substantially different cost than buyers expected when orders were placed. The tariff is paid at import, so the first exposure sits with Canadian importers before it reaches retailers or customers.

Paper supply chains on both sides of the border are closely connected. U.S. producers buy Canadian pulp and timber, while Canadian buyers source finished tissue and paper goods from American mills and converters. That integration means companies cannot necessarily replace a supplier quickly without changing product specifications, logistics or purchasing volumes.

The immediate business question is not whether every affected product will rise by the full tariff amount. Importers can absorb part of the cost, negotiate with suppliers, draw down existing inventory or move orders to Canadian and non-U.S. producers. The likely result will vary by contract and product, but buyers should now identify affected tariff classifications and review September shipments.

These duties were announced as part of Canada's broader response to U.S. trade measures. They were scheduled, but not yet in force, when the underlying industry report was published on September 1.