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Markets

US-Canada Trade War Threatens Higher Toilet Paper Prices

Published 28 August 2026

A full-scale trade conflict between the United States and Canada is threatening to raise prices on everyday household essentials, particularly toilet paper, after trade talks collapsed last week. The dispute has escalated into a broad tariff war, with both nations imposing significant duties on a wide range of goods, disrupting longstanding commercial ties.

The immediate trigger was the breakdown of negotiations last Friday, after which President Donald Trump imposed a 50 percent tariff on approximately $20 billion worth of Canadian imports, including wine, cement, plywood, and clothing. Canadian Prime Minister Mark Carney responded by vowing to match U.S. tariffs dollar for dollar. On Tuesday, Canada announced it would impose retaliatory duties of 25 to 50 percent on nearly 900 American products, set to take effect on September 8. Paper products are among the hardest hit, with Canada targeting toilet paper and facial tissue with a 25 percent duty, while other paper items face tariffs as high as 50 percent.

The impact on toilet paper stems from the deep integration of the North American supply chain. While much of the toilet paper sold in the United States is manufactured...

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