Overview

• The Trump administration announced plans to raise tariffs on Canadian softwood lumber to 27%, with potential additional levies increasing rates to over 50%.
• The U.S. imports approximately 2 million tons of Canadian northern bleached softwood kraft (NBSK) pulp annually, a critical input for toilet paper and paper towel production.
• Industry experts warn that higher tariffs could lead to Canadian sawmill closures, reducing wood chip supplies needed for pulp production.
• Many U.S. paper plants are heavily reliant on specific Canadian mills due to compatibility with their production processes, complicating the search for alternative suppliers.
• The disruption could result in higher prices and possible shortages of toilet paper and paper towels, evoking concerns of pandemic-era supply chain issues.