Tags: david mckinley | newspapers | risk | tariffs

Rep. McKinley: New Tariffs Pose Serious Risk to Newspapers

Image: Rep. McKinley: New Tariffs Pose Serious Risk to Newspapers
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By    |   Monday, 16 July 2018 02:27 PM

As American newspapers fight for their lives, new tariffs pose another serious threat to their survival, Rep. David McKinley, R-W.Va., says.

McKinley made his remarks in a column posted Monday on The Hill.

"With the rise of the internet, the industry has faced enormous challenges as people have changed how they access news, which results in diminishing subscriber and advertiser revenue streams," he said.

"This has had a particularly negative impact on rural America, which depends on their paper for local news. In small communities, the paper provides the main source for information and current events. But more than that, it connects neighboring communities with each other … and with the rest of our country.

"But now, America's newspapers face another existential threat to their survival: new tariffs on imports of Canadian newsprint. So how did this threat to America's newspapers come about?"

He noted that earlier this year the Department of Commerce responded to a petition filed by North Pacific Paper Company based in Washington. Commerce then assessed preliminary tariffs of about 30 percent on newsprint imported from Canada.

NORPAC had complained that subsidized Canadian newsprint "is being dumped into America at low prices."

"NORPAC is one of five paper mills still operating in the United States who combined can only fulfill 34 percent of the nation's newsprint demands," he said. "Additionally, three of those five mills are in Washington State. Within the industry, it's known that it's not economically efficient to ship newsprint across the country.

"The rest of America's newspapers rely on the two mills in the Southeast or Canada to fulfill their needs."

As a result of the tariff, newspapers are now facing significant costs increases. And because of their shrinking markets, newspapers are unable to pass these costs on to readers, he noted.

"These tariffs will be particularly felt in rural states, where small newspaper operations will have to scale back."

He maintained the International Trade Commission is able to reverse these tariffs.

"The Commission will have a public hearing on this issue in Washington on July 17 to hear from interested parties on why these misguided and injurious tariffs should be reversed," he said.

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Politics
Rep. David McKinley says as American newspapers fight for their lives, new tariffs pose another serious threat to their survival.
david mckinley, newspapers, risk, tariffs
360
2018-27-16
Monday, 16 July 2018 02:27 PM
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