In August 2026, the continued tiff between the U.S. and Canada is gaining major attention from businesses of both countries, as well as globally. With the evolving situation, it is clear that the packaging companies of both countries have to get their resilience tested through various thick and thins. At the same time, the companies are also facing geopolitical as well as economic hurdles.
Canadian 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.
Due to the war situation between both superpowers, the packaging industry in both countries is expected to experience widespread effects from the squabble as the added costs are applied across the supply chains. Also, 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.
Also, recently some of the packaging companies’ executives had a discussion regarding the 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 Canadian imports and were devising an impact mitigation plan. On Aug. 4, Ball executives expressed concern about tariffs and said they’re watching aluminum prices.
Certain companies in the packaging supply chain are also 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.
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 his statement.
“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 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.”
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. The Can Manufacturers Institute noted in the past 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 can makers importing nearly 80% of the latter. Canada supplies about two-thirds of the primary aluminum used in the U.S., according to The Aluminum Association.
Trump referenced the supply disparity, saying that the U.S. “desperately needs aluminum,” Bloomberg reported. “We get it all from Canada for the most part, and we need it badly.”
Regarding that aluminum need, The Aluminum Association President and CEO Charles Johnson said in a LinkedIn post before Canada’s measures: “He’s right. That’s why America must grow both primary and recycled aluminum production as part of an ‘all-of-the-above’ approach to metal supply.”
After Canada announced its countertariffs, the AA told Packaging Dive via email that it is assessing the measures and reiterated that the northern neighbor is a significant trading partner for U.S. companies.
“These measures will negatively impact segments of the industry by limiting opportunities for U.S. producers to compete in Canada at a time when America should be well positioned to meet growing aluminum demand,” Johnson said. The “all-of-the-above” approach to metal supply involves “smart, targeted trade enforcement.”
“We are hopeful that U.S. and Canadian trade officials come back to the table soon to pursue a fair and reasonable agreement,” Johnson said.
10 September 2026
09 September 2026
08 September 2026
07 September 2026