The United States and Canada are locking into a full-blown trade war after negotiations broke down last weekend, with Canadian prime minister Mark Carney vowing to match US tariffs "dollar for dollar" and imposing 25-50% duties on nearly 900 American goods from 8 September. Toilet paper and tissue products are among the hardest hit, as Canada threatens matching tariffs in retaliation for a 50% US levy, despite American manufacturers relying heavily on Canadian lumber for raw materials. This matters because it threatens decades of close economic ties between the two countries and could push up everyday costs for consumers on both sides of the border.

Canada supplied $328m worth of toilet paper to the US in 2024, by far its largest source, with retailers such as Costco heavily reliant on Canadian supply; Procter & Gamble, maker of Charmin, has already warned tariffs would push up prices. The dispute extends well beyond paper goods: the US has imposed 50% tariffs on Canadian dairy and liquor (hitting brands like Crown Royal), while Canada has hit back with 50% tariffs on American dairy, 25% on cheese, seafood and cars, and several provinces have banned American alcohol. Despite the escalating measures, and Donald Trump threatening to double car tariffs to 50% if no deal is reached by January 2027, US trade representative Jamieson Greer insists the dispute will not affect American consumers.