With the ongoing international trade disputes in 2018, we’ve heard about many of the industries that have been directly impacted by U.S. trade policy and retaliatory tariffs from foreign governments. It is well known that the agricultural industry was heavily hit, and stories relating to food products and fresh produce have been strongly represented in the media. One industry that has been heavily affected but received little coverage in the mainstream media, is the newspaper business. It’s unusual that the media has chosen not to widely cover one of their own sub-industries, but this could simply come down to the fact that newspapers now employ fewer people than television media and digital media.

Tariffs Have Had a Notable Impact on Newspaper Publishers

Regardless of coverage, the fact is that newspaper companies were heavily impacted by tariffs, as the U.S. levied up to 30% on imports for newsprint (the paper product used to produce newspapers). Most newspapers in the U.S. are produced using Canadian newsprint.

The impact of the introduction of heavy tariffs has not been trivial. The Tampa Bay Times, a leading Florida newspaper, cut 50 jobs in 2018 due to the increased cost of newspaper production. According to the paper, additional costs of $3 Million have already been felt since tariffs were raised this year. Paul Tash, the Chairman and CEO of the newspaper told media that “In some cases tariffs are supposed to protect American jobs. In this case, not only at our company but around the American newspaper business, I believe these tariffs will cost jobs.”

Paul Boyle, an executive at News Media Alliance, said earlier this year that the tariffs are “kind of a kick in the teeth right now.” His organization represents over 2000 newspapers in the U.S., and it lobbied to have tariffs reduced. Thankfully for the industry, those efforts have been effective in Washington.

Trade Commission Overturns Tariffs

The United States International Trade Commission confirmed on Wednesday that it would remove tariffs that had been levied on Canadian newsprint and similar paper products. The Commission found (contrary to what the Department of Commerce stated earlier this year) that Canadian paper products were not causing damage to U.S. based producers.

The smaller newspapers will be relieved, while the larger producers may now be able to increase production again and create more jobs as their costs return to pre-2018 levels.