Canada Slaps Tariffs on U.S. Toilet Paper, Paper Products as Trade War Escalates

After trade talks between the United States and Canada broke down, Washington imposed an additional 50% tariff on $27.6 billion of Canadian goods under Section 338 of the US Tariff Act of 1930.

Canadian Prime Minister Mark Carney announced retaliatory measures against US imports as trade tensions escalate.

The measure took effect Aug. 22, 2026. Canada responded by announcing retaliatory tariffs on US products, with duties of 15%, 25% and 50% scheduled to take effect Sept. 8.

The measures cover about $27.6 billion worth of US imports and target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Among the products affected are toilet paper and facial tissues, which will face a 25% Canadian tariff. Certain paper products, including some tissue stock and table napkins, face tariffs of up to 50%.

Canada's measures also include tariffs on US dairy products, fish and seafood and other goods.

The government has said the countermeasures are intended to match the US tariffs on a dollar-for-dollar, rate-for-rate basis for the covered products.

The escalation follows the collapse of US-Canada trade negotiations. President Donald Trump has also threatened to increase US tariffs on Canadian automobiles to 50% from 25% beginning Jan. 1, 2027, if a deal is not reached.

The toilet-paper issue carries echoes of the panic buying seen during the COVID-19 pandemic.

In March 2020, toilet paper was reportedly out of stock at about 70% of US grocery stores, including online sellers, at the height of the buying surge.

However, the new Canadian tariffs do not mean the United States is facing a toilet-paper shortage.

The effect of the duties will depend on how much affected Canadian paper products are imported into the US, supply-chain adjustments and whether costs are passed on to consumers.