Trump Faces New “Toilet Paper Tariffs” Battle as Canada Hits Back

The latest round of toilet paper tariffs between Washington and Ottawa has revived memories of 2020’s panic buying, and now sits squarely on the Trump campaign’s kitchen‑table agenda.

Impact of toilet paper tariffs on U.S. market

In late August 2026, the United States slapped a 50% duty on roughly $20 billion of Canadian imports under Section 338 of the 1930 Tariff Act. Canada responded with a matching package affecting close to 900 American products, chief among them a 25% levy on U.S. toilet paper and facial tissue and a 50% charge on paper towels.

“Canada will match those tariffs dollar for dollar, because we were attacked. It’s a matter of principle,” Prime Minister Mark Carney told reporters.

American consumers may feel the pinch quickly: Procter & Gamble warns of a ↑ $0.25 per share earnings hit and has already begun raising prices on several brands. Reuters notes that the average U.S. household uses 141 rolls a year – the world’s highest per‑capita rate.

The supply chain is tightly woven with Canada: U.S. mills source about ↓ 2 million tons of northern bleached softwood kraft pulp annually, a material that composes roughly 30% of a standard roll. Any disruption could translate into higher retail prices just as the midterm race heats up.

Analysts at Bloomberg warn that the tariff escalation may become a political flashpoint, especially as polls show only 39% approval for Trump’s economic stewardship and inflation remains the top voter concern.

Words by: Victor Hale

Equities & Market Dynamics Analyst