New tariffs announced by US President Donald Trump could have a major impact on toilet paper supplies by restricting access to Canadian raw materials, Bloomberg reports.
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Tariff details and their impact
The Trump administration plans to increase tariffs on Canadian softwood lumber to 27% from the current 14%, with the potential to rise to 50% through additional levies. That could cut into supplies of northern bleached kraft pulp (NBSK), a key component of toilet paper and paper towels. NBSK makes up 30% of U.S. toilet paper and 50% of paper towels, according to Brian McClay, head of TTOBMA, and the U.S. relies heavily on Canada, importing about 2 million tons of the stuff last year.
Dependence on Canada and the risks
McClay emphasized that U.S. producers are tied to specific Canadian mills because of a 30-year relationship and the unique properties of Canadian pulp. “If Canadian mills close because of a shortage of raw materials, there is no alternative — the recipe is not going to change,” he said. Tariffs could lead to sawmill closures, reducing the production of wood chips for pulp, leading to pandemic-like shortages or higher prices for consumers.
The Context of Trump's Policy
Trump has promoted tariffs as a way to bring manufacturing back to the U.S., arguing that the country does not need Canadian timber. However, industry experts say that U.S. alternatives cannot replace Canadian timber due to its unique characteristics, threatening the stability of the supply chain.