Cascades is reviewing how new U.S. tariffs could affect its business after saying that certain tissue and packaging products exported to the United States may face a 50% rate.
Washington announced the measures on July 20. Cascades disclosed its possible exposure on August 6 with its second-quarter results. It did not identify the products that could be affected or quantify the financial consequences.
President and CEO Hugues Simon described the situation as notable but manageable. Several tactical measures are already underway to limit the financial impact over the coming months, although the company has not said what they involve.
The risk extends beyond Cascades’ own exports. Customers whose products are subject to the tariffs could face weaker demand or reduce production, potentially lowering Cascades’ volumes in some business segments.
Despite the uncertainty, the company is maintaining its earnings outlook. Excluding any impact from the tariffs, Cascades now expects annual run-rate adjusted EBITDA to exceed C$600 million during the second half of 2026, above its original target.
Previously announced selling price increases in Packaging and Tissue are also being implemented as planned. In Packaging, a $50-per-ton increase announced in June is expected to support earnings over the next several quarters.
Cascades said its assessment will continue as the details of the new trade measures become clearer.
Founded in 1964, Cascades provides sustainable packaging, hygiene and recovery solutions. The company employs nearly 9,000 people across approximately 60 operating facilities in North America and continues to invest in recycling, innovation and the development of solutions that support a more circular economy.
