Could Tariffs Send Toilet Paper Prices Soaring? Here’s What to Know
Are the tariff wars going to lead to the toilet paper wars? Economists fear that the price of toilet paper and other paper goods is going to soar in the U.S. as the tariff controversy with Canada rages on. Here is what you need to know about how the brewing controversy may impact the price of your next roll of toilet paper.
Are Rising Prices on Toilet Paper Imminent?
The global trade wars are impacting nearly every facet of life, including how much it costs to go to the bathroom. According to new estimates, paper products are going to be one of the hardest-hit industries in the coming weeks and months. Experts estimate that this sector will be hit with 25-50% tariffs on both sides of the border.
Trade negotiations between the U.S. and Canada broke down again last week. Canadian Prime Minister Mark Carney has promised to match U.S. tariffs on Canadian exports "dollar for dollar." In that vein, Carney released a list of almost 900 American products that will face tariffs ranging from 25% to 50% beginning on September 8. The tariffs are in retaliation for a 50% tax hike placed on products going to Canada from the U.S.
While American toilet paper is typically made within its borders, the companies that manufacture the product lean heavily on Canada for the lumber used in making paper products. The owner of Charmin toilet paper, Procter & Gamble, said last year that it would be forced to raise prices if tariffs were put in place on these goods.
According to the World Bank, the U.S. imported $328 million worth of toilet paper from its neighbor to the north in 2024. This easily makes Canada the largest exporter of toilet paper to the U.S. Many notable retailers, including warehouse store giant Costco, source their paper products from Canada.
Americans are not shy about their use of this commodity. The U.S. accounts for over 20% of global tissue consumption even though it only has 4% of the planet's population. For context, the average American uses 141 rolls of toilet paper per year, just slightly ahead of the Germans.
Other Casualties of the Ongoing Trade War
The ongoing trade war between the U.S. and Canada serves as a reminder of how much the two neighboring nations rely on each other for their goods and services. U.S. tariffs are translating to much higher prices on Canadian liquor, specifically the popular whiskey brands Crown Royal and Canadian Club. Both of these brands are currently subject to a 50% tariff.
Although Canada has not slapped American liquor products with tariffs, most Canadian provinces have banned some American alcohol brands as a form of retaliation for the earlier tariffs. U.S. President Donald Trump defended his new tariffs against Canada by blaming the province-specific bans on American tariffs.
Prime Minister Carney urged province leaders to put American liquor back on the shelves in an effort to encourage better relations. However, as Nova Scotia Premier Tim Houston said, “Whether Nova Scotians or Canadians will actually buy it when it’s back on the shelves, that’s a whole other discussion."
Trump also noted that the latest round of tariffs was installed as retaliation for Canadian taxes against the U.S. dairy industry. The president has implemented a 50% tariff on Canadian dairy products except for cheese. Likewise, Canada has slapped a 50% tariff on American dairy products, including a 25% levy on American cheese.
The U.S. fishing industry has also been hit by the Canadian tariffs. Canada levied a 25% tariff on American fish, lobster, and other seafood products. GOP Sen. Susan Collins is currently in the midst of a competitive re-election battle in Maine, a state known for its lobster production. Collins said that Trump's latest round of tariffs was "a mistake."
Much has already been said about the impacts of the tariff war on the American automobile industry. A new 25% tariff placed on Canadian vehicles and auto parts will affect U.S. automakers who need Canadian parts for their manufacturing processes. President Trump has vowed to increase the tariff to 50% if trade negotiations are not finalized by January 1, 2027.
While several American business leaders are expressing concern about the breakdown of the trade negotiations, the White House insists that the ongoing strain between the U.S. and Canada will not impact American consumers. According to U.S. trade representative Jamieson Greer, "The fundamentals are good. I don’t think this is going to affect anything.”
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