Publisher's Notebook
Newsprint tariff might doom newspapers
It surely would not be breaking news if I told you that newspapers were in a spot of bother these days. The advent of the internet wreaked havoc on the newspaper business in ways nobody completely imagined. Social media like Facebook changed reading habits. Then the fake news they propagated brought distrust to all news media. Digital ads, in unlimited supply and spookily following people around, turned the public off to advertising in general.
The government allowed online retailers like Amazon to build their business and destroy local retail by not charging online sales tax while making consumers pay it for their local shopping.
Yes, many things have contributed to the decline of newspapers. Readership numbers at The Post, despite these challenges, have remained strong primarily due to our local focus. But the decline in local advertising has been felt. I would never has guessed, however, that a newly-imposed tariff on newsprint itself could be the straw that breaks the camel's back for many newspapers.
Not tariffs like the ones that President Trump recently levied against many countries like China. We can all argue the merits of those with valid arguments on both sides. This new tariff on newsprint from Canada threatens to have the same kind of unexpected consequences, however.
A tariff as high as 32 percent on the price of the paper has raised the costs on an already struggling newspaper industry in this country by 20 to 30 percent. The U.S. Department of Commerce recently enacted the tariff on newsprint from Canada and it threatens to devastate printed newspapers.
Tariffs on imported goods are designed to counter unfair advantages that foreign companies might have. That is not really the case here. In the newsprint case, a single paper mill in the state of Washington, owned by a New York hedge fund, sought the protection of the Commerce Department. As demand for its newsprint product has declined due to the trends in the industry it serves, the mill — North Pacific Paper Company — accused Canadian producers of undercutting its business by selling paper across the border at prices below a competitive rate. This triggered the new tariff.
Other U.S. newsprint mills are not backing North Pacific in its bid for tariff protection. Still, the complaint filed by one mill led to the adoption of this new tariff.
Canadian mills export about 2.3 metric tons to America, which is roughly 75 percent of the U.S. newsprint supply. The tariff will not, however, bring more U.S. producers to enter the market due to the continuing decline in newsprint demand. New mills just are not being built these days. Siting and constructing a newsprint mill in the U.S. is extremely difficult and takes years to complete. Investors are very unlikely to be found who would want to undertake this long-term risk in the face of falling demand.
I am not unbiased here. It will hurt free local newspapers like ours even more than the paid subscription dailies. They can just raise readers' prices again. We are not in a position to pass on higher rates to our advertisers. Heaven knows, local businesses are struggling enough with their own challenges in this age of the digital mega-monopolies.
The ITC has the authority to stop the tariff. The Post urges readers of this and other local newspapers to let Ohio Sens. Sherrod Brown and Rob Portman and congressional representatives know of your concerns about the newsprint tariff.
That is, if you are concerned. This week's Post weekly online poll hopes to find that out. Our question this week is "Should the newsprint tariff be overturned?" Your options include: Yes, it will force newspapers out of business ... Yes, it makes no sense ... Yes, I am against all tariffs. Or: No, we need more tariffs not less ... No, we don’t need printed newspapers anymore anyway.
Personally I feel that, without naming names, many politicians would be happier if there were no newspapers to report on their activities. They like it when they can get their "fake news" out on media they can control. This ill-thought-out tariff could stick because many of today's politicians would love to see the free press eliminated.
Last week, we asked for readers' opinions about Facebook. Would you delete Facebook? Almost a third of you (31.8 percent) said "yes, I have already deleted my account or never had one." Almost half (43.4 percent) said that they were "on the fence." That means that an astonishing three-fourths of our readers are pretty iffy about the social media giant these days.
It looks like real news from real newspapers and fake news from "Fakebook" are both equally in trouble.
The government allowed online retailers like Amazon to build their business and destroy local retail by not charging online sales tax while making consumers pay it for their local shopping.
Yes, many things have contributed to the decline of newspapers. Readership numbers at The Post, despite these challenges, have remained strong primarily due to our local focus. But the decline in local advertising has been felt. I would never has guessed, however, that a newly-imposed tariff on newsprint itself could be the straw that breaks the camel's back for many newspapers.
Not tariffs like the ones that President Trump recently levied against many countries like China. We can all argue the merits of those with valid arguments on both sides. This new tariff on newsprint from Canada threatens to have the same kind of unexpected consequences, however.
A tariff as high as 32 percent on the price of the paper has raised the costs on an already struggling newspaper industry in this country by 20 to 30 percent. The U.S. Department of Commerce recently enacted the tariff on newsprint from Canada and it threatens to devastate printed newspapers.
Tariffs on imported goods are designed to counter unfair advantages that foreign companies might have. That is not really the case here. In the newsprint case, a single paper mill in the state of Washington, owned by a New York hedge fund, sought the protection of the Commerce Department. As demand for its newsprint product has declined due to the trends in the industry it serves, the mill — North Pacific Paper Company — accused Canadian producers of undercutting its business by selling paper across the border at prices below a competitive rate. This triggered the new tariff.
Other U.S. newsprint mills are not backing North Pacific in its bid for tariff protection. Still, the complaint filed by one mill led to the adoption of this new tariff.
Canadian mills export about 2.3 metric tons to America, which is roughly 75 percent of the U.S. newsprint supply. The tariff will not, however, bring more U.S. producers to enter the market due to the continuing decline in newsprint demand. New mills just are not being built these days. Siting and constructing a newsprint mill in the U.S. is extremely difficult and takes years to complete. Investors are very unlikely to be found who would want to undertake this long-term risk in the face of falling demand.
I am not unbiased here. It will hurt free local newspapers like ours even more than the paid subscription dailies. They can just raise readers' prices again. We are not in a position to pass on higher rates to our advertisers. Heaven knows, local businesses are struggling enough with their own challenges in this age of the digital mega-monopolies.
The ITC has the authority to stop the tariff. The Post urges readers of this and other local newspapers to let Ohio Sens. Sherrod Brown and Rob Portman and congressional representatives know of your concerns about the newsprint tariff.
That is, if you are concerned. This week's Post weekly online poll hopes to find that out. Our question this week is "Should the newsprint tariff be overturned?" Your options include: Yes, it will force newspapers out of business ... Yes, it makes no sense ... Yes, I am against all tariffs. Or: No, we need more tariffs not less ... No, we don’t need printed newspapers anymore anyway.
Personally I feel that, without naming names, many politicians would be happier if there were no newspapers to report on their activities. They like it when they can get their "fake news" out on media they can control. This ill-thought-out tariff could stick because many of today's politicians would love to see the free press eliminated.
Last week, we asked for readers' opinions about Facebook. Would you delete Facebook? Almost a third of you (31.8 percent) said "yes, I have already deleted my account or never had one." Almost half (43.4 percent) said that they were "on the fence." That means that an astonishing three-fourths of our readers are pretty iffy about the social media giant these days.
It looks like real news from real newspapers and fake news from "Fakebook" are both equally in trouble.
