The administration of U.S. President Donald Trump has announced new 50% tariffs on a broad range of Canadian products, including pulp and paper, citing what it describes as discriminatory Canadian trade practices affecting American exports.
The measures were introduced through three Presidential Proclamations issued under Section 338 of the U.S. Tariff Act of 1930. According to the White House, the tariffs are intended to offset disadvantages faced by U.S. exporters and restore reciprocity in trade relations between the two countries.
The additional duties will enter into force 30 days after the signing of the proclamations and will apply regardless of whether the products qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
Pulp and paper among the affected products
The new tariffs cover numerous Canadian goods across several industrial sectors, including pulp and paper products. However, certain categories remain exempt, including energy products, potash, goods already subject to Section 232 tariffs, fish and selected critical minerals.
The White House stated that the measures are designed to counter what it considers discriminatory Canadian policies affecting U.S. exports of automobiles, alcoholic beverages and dairy products.
White House cites trade barriers
According to the administration, Canada maintains tariff-rate quotas and other restrictions that disadvantage U.S. exporters compared with suppliers from other countries. The White House said imports of U.S. motor vehicles into Canada declined by approximately 22% between April 2025 and March 2026 compared with the previous 12-month period, while imports from other countries increased.
It also pointed to an 81% decline in Canadian imports of U.S. alcoholic beverages between March 2025 and February 2026 after most Canadian provinces suspended purchases and sales of American alcohol products.
In the dairy sector, the administration argued that Canada’s tariff-rate quotas for U.S. cheese remain more restrictive than those applied to similar imports from the European Union.
Section 338 used to justify new duties
The tariffs have been imposed under Section 338 of the Tariff Act of 1930, which authorizes the U.S. President to apply additional duties when another country discriminates against American commerce.
According to the White House, the objective is to eliminate what it considers unequal treatment of U.S. exports and encourage Canada to address existing trade barriers rather than maintain retaliatory measures.
The administration also stated that Canada, together with China, has chosen to respond to previous U.S. tariff actions instead of negotiating new trade arrangements.
Potential impact on the forest products industry
The inclusion of pulp and paper products means the new tariffs could affect cross-border trade within one of the world’s most integrated forest products supply chains.
Canada is one of the largest foreign suppliers of pulp, paper and forest products to the United States, with significant volumes supporting packaging, tissue, printing paper and other manufacturing sectors.
Industry participants are expected to closely monitor the implementation of the measures and any potential responses from the Canadian government, as well as their possible impact on supply chains, pricing and future trade negotiations.
Picture: Nail Ovic.
