As tensions rise between the United States and Canada over tariffs, newspapers on both sides of the border are feeling the strain. Paul Deegan, CEO of News Media Canada, joined E&P Reports to discuss how the trade war is affecting the news industry, the broader economic implications, and the efforts being made to restore balance in a historically strong relationship.
A trade war nobody wanted
For decades, the U.S. and Canada have maintained a deeply integrated economic relationship, one that has benefited businesses and consumers in both nations. Now, as tariffs take effect, that relationship is at risk. Deegan emphasized that these policies are creating unnecessary hardships for industries that rely on cross-border trade, including news publishing.
“If you look at newsprint for U.S. newspapers, a lot of it comes from Canada,” Deegan explained. “So if you stick a 25 percent tariff on that, that puts enormous pressure on U.S. publishers. Conversely, for Canadian publishers, we actually get most of our ink from the U.S. We get it from Flint and Sun Chemical. Some of that’s actually made in Tennessee, some of it in Illinois. So we use your ink and you use a lot of our paper.”
These trade barriers are not only making it harder for newspapers to survive, but they are also straining the long-standing economic interdependence between the two nations. Deegan pointed out that while the U.S. has more significant trade issues with countries like China, Mexico, and Germany, Canada has been caught in the middle of the latest round of protectionist policies.
Newspapers are closing under financial strain
In both the U.S. and Canada, rising costs are pushing local newspapers to the brink. Print publications already facing financial challenges due to declining advertising revenue are now being hit with additional costs that make operations even more difficult.
“We had a lady just shut down her newspaper in Alberta. It’s been in business for 114 years,” Deegan said. “With that change from our post office, it’s costing her $24,000. That was the difference between being in business and serving her community and closing up shop. It’s really sad.”
The financial pressure is just as severe in the U.S. A historic 140-year-old newspaper in New York recently closed, and others are struggling with increased expenses for essential materials like ink, plates, and paper. Deegan noted that while these issues might not always make front-page headlines, they are having a real impact on the viability of the industry.
Canada is also dealing with challenges in newspaper distribution. Until recently, community newspapers delivered through Canada Post were exempt from the country’s “No Junk Mail” policy, ensuring that they could reach every home in their area. That exemption was removed, creating yet another hurdle for local publishers trying to keep their businesses afloat.
A shift in public sentiment
The tariffs have not only impacted businesses but have also fueled a sense of division between two nations that have long considered themselves close allies. Deegan noted that Canadian citizens are becoming more conscious of where their products come from and, in many cases, are making efforts to prioritize Canadian-made goods over American imports.
“If you go to the liquor store in Ontario, which is owned by the province, there’s actually a blank space for bourbon. There’s no bourbon on the shelves right now,” Deegan said. “People are looking at the grocery store like, am I buying an apple from Ontario, or is it from Washington state?”
At the same time, Deegan acknowledged that this shift is not just about economic protectionism—it is also about frustration with what many Canadians see as an unreliable trade relationship. Even though the two countries signed a free trade agreement under the Trump administration, it has effectively been sidelined, making Canadians more cautious about their reliance on the U.S. as a trading partner.
“President Trump has done more for Canadian unity than anyone else in a generation,” Deegan said. “This has really brought Canadians together with a sense of pride but also with a sense of purpose. At the same time, even though we want to repair a relationship with the United States, we’re certainly looking both east and west—whether it’s Europe or Asia—in terms of diversifying our trading relationships.”
The call for media advocacy
As trade tensions continue, industry leaders on both sides of the border are pushing for advocacy to ensure that lawmakers understand the impact of these policies. In the U.S., Dean Ridings of America’s Newspapers recently isssued a call for publishers to take a more active role in explaining the economic strain to decision-makers. Deegan and his team at News Media Canada are doing the same, encouraging local advertisers to invest in Canadian media and emphasizing the importance of supporting local journalism.
“We’re launching a campaign that encourages Canadians to buy Canadian but also to advertise locally,” Deegan said. “The Canadian digital advertising market is about $15 billion, and most of that money is going to Google, Meta, and Amazon. What we’re telling people is to advertise directly with your national newspaper or your local community newspaper. It’s so important to support the home team, especially in a time like this.”
Deegan also urged U.S. media outlets to dedicate more coverage to the impact of tariffs on both countries, particularly the ripple effects that extend beyond the publishing industry. He pointed to examples like a gas station owner in Blaine, Washington, who has seen a dramatic drop in Canadian customers due to new trade policies, and the Buffalo-Toronto Public Media network, which has long relied on a cross-border audience but is now struggling to reach the same level of engagement.
Looking ahead
Despite the current tensions, Deegan remains hopeful that the U.S.-Canada relationship can return to a place of cooperation and mutual benefit. But for that to happen, the rhetoric needs to shift, and media coverage will play a crucial role in educating both policymakers and the public.
“We have been best friends forever, and we need to get back to that relationship,” Deegan said. “We need to make sure the rhetoric is dialed back. But I would say first and foremost for publishers and editors in the United States—cover these North American stories, show how both countries benefit from trade. The goal here is to grow the pie.”
He emphasized that isolating the U.S. from its trade partners would ultimately do more harm than good, not just for Canada, but for American businesses and consumers as well.
“If the United States throws massive tariffs on everyone else in the world and builds a big wall around itself, the U.S. is going to be poorer for it,” Deegan said. “We’re going to be poorer, and we’re not going to be able to buy your goods. So let’s figure out a way to work through this with common-sense policies. Let’s bring jobs back to North America so we can all be stronger and prosper together.”
With that message, Deegan closed with a simple request: for the press to continue reporting on these issues and for both sides to recognize that economic cooperation remains the best path forward.
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