At a Finance Committee hearing today called to discuss Trump Administration tariffs, U.S. Senator Mike Enzi, R-Wyo., pointed out the significant damage tariffs on newsprint paper are causing rural newspapers.
Last year, following a complaint by a Washington state paper mill, the International Trade Commission launched an investigation into U.S. imports of Canadian uncoated groundwood used to make newsprint. After the preliminary investigation, the Department of Commerce imposed tariffs on uncoated groundwood from Canada, which local papers utilize.
Enzi told Commerce Department Secretary Wilbur Ross that in this case, tariffs imposed to benefit one mill will result in damage to rural newspapers.
“It has a lot of different implications that are hard to calculate, but I can guarantee you that a lot of small newspapers are going to go out of business if that happens,” Enzi said. “That one mill may do well, but on the other hand, with less customers, it may not.”
While Ross said that his department has limited data on the increased cost for papers, he said the information they received from the Washington state paper mill has indicated that it would only be a fraction of a penny per issue. But Ross noted that they have not received any additional information from the newspaper industry.
“We are desperately seeking input,” Ross said. “Any newspapers in any of your areas who would be willing to submit that information would be very helpful.”
Enzi contended the cost per page of the newspaper is absorbed very differently by small papers throughout Wyoming compared to larger, national newspapers. Enzi stressed that retailers, pharmacies, grocery stores and other businesses are now paying higher prices for advertising inserts in newspapers and will reduce print advertising budgets to make up for those costs. As a result, Enzi said, the newspaper will pay the cost of the tariff and endure lost advertising revenue.
Enzi also sought clarification on the Commerce Department initiating an investigation on a petition for relief from imports of foreign uranium that threaten national security, which is an important issue for Wyoming because the state accounted for two-thirds of all domestic uranium produced last year.
A recent report found that domestic uranium comprised only 7 percent of the total uranium delivered to civilian nuclear power reactors. Ross said the department will be making a decision very shortly about initiating an investigation.
“It’s complicated by some prior agreements that exist, but we’re sorting through it,” Ross said.
Enzi plans to follow up with Secretary Ross about additional concerns, including China’s threat to impose duties on U.S. oil imports, potential retaliatory actions on the U.S. beef industry and the impact aluminum and steel tariffs have on domestic industries.
See some of Enzi's and Ross's comments here.
