Canada tariffs target US PE bags, plastic tableware

Market: Petrochemicals
03/09/26

Canada's latest retaliatory tariffs against the US will apply to several plastic products, including polyethylene (PE) bags and plastic tableware, according to the country's Department of Finance.

Canada announced tariffs ranging from 15-50pc on about $20bn of US goods, which are expected to take effect on 8 September.

Plastic products on the list include packaging for goods such as stoppers, lids, caps and other plastic closures, along with plastic tableware, kitchenware and household appliances made of plastic, all of which will face a 50pc tariff, according to Canada's tariff list.

The move is one of the clearest instances of plastics being targeted in the latest trade actions between the US and Canada. These products are typically made from PE and polypropylene (PP). PE bags are usually made from high density polyethylene (HDPE) or low density polyethylene (LDPE), while plastic tableware, lids, caps and other closures are often made from PP. Some packaging components may also use polyethylene terephthalate (PET).

Any change in cross border demand for products covered by the tariffs could alter trade flows between the US and Canada and affect demand for recycled resin if material prices rise, though the extent of any market impact remains unclear.

By Dona Davis

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02/09/26

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