How Trump’s tariffs on Canadian lumber could affect toilet paper supplies
28 March 19:45
The duties on Canadian softwood lumber promised by US President Donald Trump could disrupt the toilet paper supply chain.
This was reported by Bloomberg, according to Komersant ukrainskyi.
The Trump administration plans to almost double duties on Canadian softwood lumber to 27%, with the possibility of additional fees, which could raise tariffs to more than 50%.
Although Trump is in favor of the new duties in part to support American production, they could also hit the availability of northern bleached softwood sulfate pulp (NBSK), a key component for toilet paper and paper towel production, Bloomberg writes.
According to Brian McClay, head of TTOBMA, which tracks the global pulp market, NBSK makes up about 30% of standard toilet paper and half of regular paper towels, and currently comes mainly from Canada. He added that last year, the US imported about 2 million tons of Canadian NBSK, which underscores the long-standing dependence of US paper goods manufacturers on Canadian pulp.
The article says that US duties on lumber from Canada could trigger a shortage of toilet paper, similar to the situation that occurred during the coronavirus pandemic. In addition, the tariffs could lead to higher prices for this product.
Tariffs also risk having a cascading effect on the supply chain. Increased lumber prices could lead to a decline in construction activity, resulting in fewer trees being harvested and, consequently, a reduced supply of wood chips needed for pulp production. This shortage could potentially lead to higher production costs for tissue manufacturers and supply constraints.
McClay said that if taxes on lumber imports were increased by more than 50%, some sawmills would shut down, reducing the supply of wood chips.
“Since we don’t cut down trees for pulp production in Canada, we depend on residual wood chips from sawmills. This will definitely increase the cost and probably reduce production volumes,” he explained.
Earlier, Canada mirrored the United States’ 25% import duty.
