Toilet paper and other paper products in the United States could become more expensive as an escalating trade dispute with Canada threatens to disrupt one of the two countries’ most closely connected supply chains.
Canada has announced plans to impose tariffs of between 25% and 50% on “toilet paper or face tissue stock” imported from the US from September 8. The move comes in retaliation for a 50% US tariff on the same sector.
The latest measures followed the collapse of trade negotiations between Washington and Ottawa. Canadian Prime Minister Mark Carney has vowed to respond to US tariffs “dollar for dollar”, with nearly 900 American products set to face new duties.
Although much of the toilet paper sold in the US is manufactured domestically, the industry relies heavily on Canada for timber and other raw materials. The US imported around US$328 million (RM1.4 billion) worth of toilet paper from Canada in 2024, making it the largest foreign supplier of the product to the American market.
Major retailers are also exposed to the cross-border supply chain, with companies such as Costco sourcing significant quantities of paper products from Canada. Procter & Gamble, which owns Charmin, previously warned that tariffs could force it to raise prices.
The potential impact is significant given Americans’ heavy consumption of toilet paper. The US accounts for more than 20% of global tissue consumption despite having just 4% of the world’s population, with the average American using about 141 rolls a year.
The tariff dispute extends well beyond toilet paper. Canadian liquor, including brands such as Crown Royal and Canadian Club, is already facing a 50% US tariff, while several Canadian provinces have restricted the sale of American alcohol in response to earlier trade measures.
Other industries are also caught in the crossfire. Canada has imposed tariffs on American dairy products, fish and seafood, while tariffs on Canadian cars and automotive parts are threatening an industry that relies heavily on cross-border manufacturing.
With negotiations currently stalled, it remains unclear when the tariffs will be lifted. Despite concerns over rising costs, US Trade Representative Jamieson Greer has maintained that the dispute will not significantly affect American consumers, saying the fundamentals of the economy remain strong.
