First indications are that Canadian newsprint was spared when worldwide tariffs were announced Thursday by President Trump.
"USMCA-compliant goods,
including newsprint, will continue to be exempt from both the 25% tariffs imposed on goods from Canada and Mexico, and the additional 10% baseline tariff announced today," the News/Media Alliance
reports.
This means publishers apparently “dodged a bullet,” one source says.
USMCA requires rules of
origin, primarily that the products are produced in North America.
Of course, the understanding is provisional and could change in a way that would not be favorable to
publishers.
Indeed, the night before the tariff announcement, the News/Media Alliance expressed deep alarm over the prospect of tariffs on
newsprint.
“The News/Media Alliance supports strong trade enforcement to protect U.S. industries and jobs, but tariffs on newsprint and magazine paper would do
the opposite,” said Danielle Coffey, president and CEO of the News/Media Alliance. “Thousands of local news publishers and magazine companies across the U.S. rely on Canadian newsprint,
and do not have the resources to afford a significant increase in their printing costs.”
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If these tariffs were implemented, “we will see many go out of business
– killing jobs, shutting down small businesses, and eliminating the only local source of news for many communities across America.”
The letter, written in coordination with the
Printing United Alliance, states that tariffs “could end up harming production by American businesses, particularly by including newsprint and paper used by U.S. newspapers, magazines, book
publishers and printers, put jobs at risk, increase costs, and harm small businesses”
It continues, “The business reality is that many U.S. publishers must rely upon Canadian paper
as a crucial supply component for print newspapers. With newsprint being the second largest expense for small newspapers after human resource costs, any tariffs on Canadian imports of paper will have
a devastating impact. “
The letter adds, “Even if all media companies switched to using U.S. companies, there is not enough capacity to produce the supply needed. Furthermore, due
to the capital-intensive nature of paper making and a decline in paper use, no new U.S. investment in paper production will be forthcoming.”
This story has been updated.