Trump's Tariffs Spark Toilet Paper Fears Amid Trade Dispute with Canada
A trade dispute between the US and Canada has revived concerns about a toilet paper shortage in America. The issue began in late August when Washington imposed a 50% tariff on $20 billion of Canadian goods under Section 338 of the Tariff Act of 1930, which allows the president to retaliate against countries seen as discriminating against US commerce.
Canadian Prime Minister Mark Carney responded by vowing to match the US 'dollar for dollar' and unveiling retaliatory tariffs on close to 900 American products. Among them are toilet paper and paper products, with Canada imposing a 25% duty on U.S. toilet paper and facial tissue, and a 50% duty on paper towels, napkins, and raw wood pulp.
A shortage of toilet paper is not just a hypothetical scenario; it happened in March 2020 when US sales surged 734%, leading to widespread shortages as retailers imposed purchase limits. Researchers found that the shortage was caused by hoarding, not a break in production. The episode became a symbol of an economy feeling out of control under President Trump.
The trade dispute has complicated supply chains, with American factories relying on northern bleached softwood kraft pulp (NBSK) harvested from Canadian forests, which makes up roughly 30% of a standard American toilet paper roll and close to half of U.S. paper towel production.