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The burgeoning trade war between the United States and Canada is gaining attention from businesses on both sides of the border and beyond to see whether the threatened tariffs stick. As the situation evolves, it’s becoming clearer that companies across the packaging industry stand to have their resilience tested — at a time when other geopolitical and economic hurdles are also creating pressure.
On Tuesday, Canada Prime Minister Mark Carney announced tariffs up to 50% on a range of materials and goods it imports from the United States in response to U.S. President Donald Trump imposing similar tariffs over the weekend after trade talks collapsed. Canada is the U.S.’ second largest trading partner, just behind Mexico, according to U.S. Census Bureau data.
The packaging industry is expected to experience widespread effects from the squabble as the added costs are applied across supply chains. However, sectors that stand to feel the most pronounced effects are those that rely on materials or products directly named in the countries’ tariff orders: Canada listed pulp and paper as well as aluminum and steel, while the U.S. cited wood products and paper, which analysts surmised also includes containerboard and boxboard — separate from the U.S.’ sectoral tariffs on metals.
