Packaging sector braces for US-Canada trade war impacts

An article from Packaging sector braces for US-Canada trade war impacts Trade associations representing manufacturers of fiber, metal and glass packaging weighed in on expected effects — mainly higher costs — that could impact companies in both countries. Published Aug.

27, 2026 Katie Pyzyk Lead Reporter Share Copy link Email / Print License Add us on Google U. S. President Donald Trump speaks with Canada Prime Minister Mark Carney during the G7 summit in Evian-les-Bains, France, on June 16, 2026. Evelyn Hockstein via Getty Images First published on Listen to the article 7 min This audio is auto-generated.

Please let us know if you have feedback. 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. Ahead of the trade dispute, some packaging company executives talked during recent earnings calls about their tariff mitigation plans. Cascades executives said on Aug. 6 that they were assessing potential impacts from the U. S.’ 50% tariffs on Canada imports and were devising an impact mitigation plan. On Aug.

4, Ball executives expressed concern about tariffs and said they’re watching aluminum prices. Given the expectations for sweeping cost increases, certain companies in the packaging supply chain are assessing whether to pull forward purchases and shipments to beat the Sept. 8 tariffs, multiple sources with knowledge of the industry said.

However, there’s little firm evidence of widespread frontloading so far in this rapidly evolving environment. All the companies Packaging Dive contacted declined to comment on the U. S. -Canada situation. But some trade groups weighed in. Fiber “The U. S.

pulp, paper, packaging and tissue supply chain is deeply integrated across North America,” American Forest & Paper Association President and CEO Heidi Brock said in a statement Tuesday. “New counter-tariffs on U. S.

goods, including pulp and paper products, risk adding uncertainty and cost for manufacturers, workers, customers and communities on both sides of the border,” she said. While the group supports trade policies that address unfair practices and strengthen U. S. manufacturing, “escalating tariff disputes between the U. S.

and Canada will disrupt the cross-border supply chains that help mills and manufacturers.” On the other side of the border, the Canadian Corrugated and Containerboard Association said in a LinkedIn post over the weekend that it is “disappointed that a stable, fair trade agreement has not been reached.”

“Canada should make clear that the corrugated and containerboard industry is deeply integrated across the border, and that tariffs would harm manufacturers, workers and customers on both sides,” Serge Desgagnés, CCCA executive director, said in a letter.

“Since virtually every product relies on corrugated packaging, disrupting this supply chain would disrupt many others.” In addition to raising costs for manufacturers and exporters, disruptions to corrugated trade could affect recovered fiber markets that sustain the country’s recycling infrastructure, according to the CCCA.

The group called on leaders in both countries to continue talks and remove corrugated products from the proposed tariffs. Metals Beginning Sept. 8, Canada is set to double levies for metal imports from the current 25%, mirroring the Trump administration’s Section 232 tariffs of 50% for aluminum, steel and copper along with derivative products.

While the Can Manufacturers Institute did not comment on the current U. S. -Canada situation, in the past it has noted that steel and aluminum tariffs filter through supply chains to raise the price of canned goods at grocery stores. It has also highlighted for years that the U. S. imports a huge amount of its aluminum and tin mill steel, with domestic c