How One Firm Got Tariffs Imposed To Hurt US Newspapers, Bolster Own Business

VANCOUVER, WA - APRIL 18: Foreman John Shamrock (L) checks the color on a page of newspaper while printing the daily edition of The Columbian on April 18, 2018 in Vancouver, Washington. In January of 2017 the the U.S... VANCOUVER, WA - APRIL 18: Foreman John Shamrock (L) checks the color on a page of newspaper while printing the daily edition of The Columbian on April 18, 2018 in Vancouver, Washington. In January of 2017 the the U.S. Commerce Department imposed tariffs as much as 32 percent on Canadian newsprint causing paper prices to wildly skyrocket. The new prices may harm newspapers, already operating on razor thin margins, across the United States. (Photo by Natalie Behring/Getty Images) MORE LESS
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A private-equity firm called One Rock Capital got the Commerce Department to levy tariffs on imported newsprint over the objections of the U.S. press, Canadian government and bipartisan lawmakers, according to a Monday Wall Street Journal report.

The company reportedly approached Commerce Secretary Wilbur Ross about how Canadian newsprint imports were hurting its business, resulting in tariffs that lifted newsprint prices by 30 percent.

For U.S. newspapers, the cost of newsprint is usually the second-greatest expense after personnel, making this increase a significant burden that could lead to layoffs and closures.

“This whole play by Norpac basically disrupted an entire industry,” Paul Boyle, senior vice president at the News Media Alliance, told the Wall Street Journal.

“My cynical side says you’ve got an administration that happens to be not a big fan of the print publications generally,” Kevin Mason, an analyst at ERA Forest Products Research, added.

The White House reportedly called the claims “ridiculous” and Ross maintained that this was a “complicated and unique case,” and that the tariffs successfully punish “bad actors.”

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  1. The White House reportedly called the claims “ridiculous” and Ross maintained that this was a “complicated and unique case,” and that them tariffs successfully punish “bad actors.”

    I think this says a couple things…

    1. “ridiculous” = guilty as charged
    2. “complicated and unique issue” = we are incapable of anticipating the consequences of our actions
    3. “bad actors” = the press continues to say mean things about our fearless leader and we will find ways to make them pay
  2. Avatar for jmacaz jmacaz says:

    Wilbur Ross… ONLY the best

  3. Since many American farmers are hurting in the tariff wars, is this meant to imply they are ‘bad actors’ who deserve punishment?

  4. Avatar for ljb860 ljb860 says:

    OOPS and Bad Gateway day… has hit me at least a dozen time already… this is what week 8 or 10 and still not fixed…

  5. Avatar for paulw paulw says:

    So just who owns this private company that apparently owns some newsprint suppliers? And how much did they donate to the GOP last cycle?

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