The struggling newspaper and publishing industries may yet get some relief from recently enacted tariffs on newsprint imported from Canada.
Two senators from Maine, Republican Susan Collins and Independent Angus King, have introduced the Protecting Rational Incentives in Newsprint Trade (PRINT) Act of 2018, which would suspend new tariffs currently being imposed on imported uncoated groundwood paper from Canada. The imported paper is the primary source of newsprint and other paper used by domestic newspapers, book publishers and commercial printers.
Earlier this month, Times Executive Editor Lisa Micco outlined in a column the background on the tariffs and the cost to newspapers. There are only a handful of paper mills in the United States and one, the North Pacific Paper Corp. in Longview, Wash., petitioned for tariffs on Canadian imports. The Department of Commerce imposed the tariffs, although a final decision by the Department of Commerce and International Trade Commission won’t come until August.
In the meantime, newsprint costs have soared by 20 percent or more already and could climb as high as 32 percent, according to analysts. For an industry already struggling with the challenges of balancing print and digital products, the increase is a major threat. For instance, The Times and The Ellwood City Ledger combined use about 160,600 pounds of newsprint a month. The price increase from the tariffs will translate into an annual increase for newsprint of nearly $188,000.
For many newspapers, such increases will mean more budget cuts and possible layoffs. The Tampa Bay Times, for one, announced in March that 50 jobs would be cut because of the escalating newsprint costs.
The PRINT Act proposed by Collins and King (and supported by eight other senators) would require the Department of Commerce to review the economic health of the printing and publishing industries. It would put the existing and final tariff decisions on hold until such a study is completed.
If the tariffs remain and newsprint costs continue to soar, the outlook for small- and mid-sized newspapers throughout the country is bleak. Most of those newspapers serve smaller communities that would otherwise be overlooked when it comes to coverage of local events, people and government actions. Most of them operate on the edge of profitability now; a huge spike in the biggest supply item could force many newspapers out of business.
Sen. Collins said in a statement that the complaint from North Pacific Paper does not justify the tariffs.
“As a senator representing one of our nation’s leading papermaking states, I have consistently fought for actions to ensure a level playing field for the domestic papermaking industry,” she said. “In this case, however, one domestic mill owned by a venture capital firm appears to be taking advantage of trade remedies to add to its own bottom line, putting thousands of American jobs at risk.”
David Chavern, president and CEO of the News Media Alliance, said this is a critical time for newspapers if they are to survive.
“Publishers already face economic headwinds due to the migration of advertising from print to digital,” he said. “We simply cannot absorb extra costs from import taxes. Newspapers will close or be forced to raise prices for readers and advertisers. … These tariffs are killing jobs and high-quality news in local communities.”
We believe that newspapers remain vital components of their respective communities and need your support in this fight. We urge you to contact our U.S. senators – Democrat Bob Casey and Republican Pat Toomey – and area congressmen – Republican Keith Rothfus and Democrat Conor Lamb. Let them know you are opposed to tariffs on newsprint because of the potential harm they represent to the industry.
Some may contend that newspapers have outlived their usefulness because of technology and the internet. What we do know is this: Newspapers won’t be missed … until they are gone.