by Clay Foster Northeast Mississippi Journal
April 11, 2018
There’s been a lot of attention by media sources of late on tariffs the government has placed on items like steel and aluminum on countries like China, and the threat of retaliation and the impact it could have on soybeans and other U.S. exports, as well as items produced and sold locally. What is less well known and publicized is the impact tariffs are having on our own business – newspaper publishing.
Our two largest expenses are payroll and newsprint. Since October of last year, we’ve absorbed newsprint price increases of over 30 percent. Now, the U.S. government is placing tariffs on newsprint imported from Canada or produced by Canadian mills located in the U.S. The result is an increase in the price paid for newsprint of over $200 per ton in only a matter of months. The annualized impact is several hundred thousand dollars of additional costs for Journal Inc. That’s an extremely challenging increase to absorb for any business.