Renting a friend, toilet paper tariffs, and more

Hey folks!There are few things more American than using an unreasonable amount of toilet paper.In fact, the average American goes through about 141 rolls a year, making the US the world's biggest toilet paper consumer despite having only around 4% of the global population.

And now, thanks to the latest US-Canada trade war, even that very American habit could get a little more expensive.You see, Canada has threatened to slap tariffs of up to 50% on American paper products starting in September, in retaliation for the tariffs imposed by the US. And while most toilet paper sold in America is made in America, much of what goes into making it comes from Canada.This is because Canada is home to large forests and a well-established pulp and paper industry, so American manufacturers have spent decades building supply chains around relatively cheap Canadian raw materials.A tree might be grown in Canada, turned into pulp there, shipped across the border, processed by an American manufacturer, and eventually end up sitting on a shelf at Costco.This is why a tariff doesn't need to hit the “final product” for consumers to feel it. And if the cost of the raw material goes up, manufacturers have two choices: Absorb the extra cost and accept lower margins, or Pass the price increase on to shoppers. And unlike napkins, toilet paper isn't exactly something consumers can easily decide to stop buying until prices come down.The irony here is that the most vulnerable products aren't necessarily the glamorous ones.

More on this story

It's the things that sit unnoticed in our homes until their prices suddenly change.So perhaps the strangest realisation from this trade war is that the tariffs America imposes may ultimately hit much closer to people's homes, or, in this case, slightly below it. And if this continues, Americans might just finally start using a jet spray.Here’s a soundtrack to put you in the mood… 🎵Dil Behra by Raghu KhoslaYou can thank our reader, Vishal Rawat, for this lovely re…