Trade talks breakdown poses threat to US print and paper

The collapse of US-Canada trade talks creates unwanted uncertainty, price rises and instability for US printers and paper mills.

The US printing industry face price hikes and supply chain disruption after trade talks between the US and Canada broke down at the end of last week.

The negotiations focused on plans by President Trump to impose tariffs of up to 50% on goods coming from Canada under a 1930 trade act. This follows the striking down of Trump’s use of emergency levies shortly after coming to force for the second time in 2024.

The tariffs are aimed at imports of alcohol, motor vehicles and dairy products coming from Canada. But according to the Printing United Alliance these will apply to goods used on print and paper. It lists bookbinding machinery, printed circuit boards, printing inks, plates and also coated papers and boards, dissolving pulps, printing and writing papers, speciality papers and packaging and covered paper products.

In a statement issued while talks were underway, the Printing United Alliance says: “Many print service providers rely on Canadian made equipment, components, substrates, packaging materials, and other essential inputs. The tariffs could disrupt supply chains, raise material and equipment costs, prompt supplier price increases, extend lead times as sourcing strategies shift, and complicate planned capital investments. 

“The potential effects are particularly significant for paper based products. Canada is the largest supplier of paper and paperboard to the US, with imports totaling approximately $6.59 billion in 2025. This figure underscores the importance of maintaining reliable cross border supply chains, a concern also shared by the American Forest & Paper Association (AF&PA).”

That organisation, while supporting the administration’s actions to defend US manufacturers from unfair trade practices, warns that broad tariffs on Canadian inputs “could create real disruptions and uncertainty for industries like ours”. US mills for all types of paper, including packaging grades, are dependent on Canadian fibre. Any instability will affect decisions about investments within the paper industry.

The printing industry body says that “print service providers may want to review their supply chains for Canadian sourced products, consult vendors about which materials and equipment are subject to the tariffs, and consider the potential effects on upcoming purchases and long term contracts”.

The action is being taken under Section 338 of the Tariff Act of 1930 which allows the administration to take action against countries that discriminate against US commerce. There is no expirary date on Section 338 tariffs.