Canadian paper cup and bowl maker sees growing local demand amid tariffs

The situation highlights the effect of the trade war on Canadian manufacturers, with some companies emerging as potential beneficiaries.

However, the slate of so-called tariff winners may be small, and could shift as the trade tussle unfolds.

Eco Guardian recently opened its new facility north of Toronto with the capacity to produce more than a billion paper cups a year.

The company was in talks with a U.S. manufacturer of paperboard when the first round of tariff threats hit last year, prompting the company to change course and source its raw material from Asia and Europe instead.

That shift means the company makes its products in Canada without U.S.-origin inputs, shielding it from Canadian retaliatory tariffs and making its cups and bowls more attractive to the domestic foodservice industry.

Despite becoming more appealing to Canadian restaurants and cafes, Eco Guardian has dealt with challenges in the U.S. due to tariffs.

“There’s a 50 per cent tariff that started,” Abrol said. “My team told me there’s one container which they have shipped … the container value might be $25,000 (and) there’s a tariff of $14,000.”

One of the company’s machines, which was producing paper packaging exclusively for a U.S. customer, was switched off this week and will be converted to a new customer’s product, he said.

However, Eco Guardian has managed to maintain sales to the U.S. customer by distributing a similar product made in Asia rather than made in Canada, he said.

While Eco Guardian manufactures paper cups and bowls in Ontario, it also distributes compostable and recyclable packaging including fibre plates, clamshells and cutlery made overseas.

“Our supply from Asia will continue to them,” Abrol said. “We will not suffer any sales loss.”

Still, the company’s plan to grow its U.S. market share is on pause.

“We may see our exports to U.S.A. reducing a bit or not increasing the way we have planned it,” he said. “But the Canadian large customers for whom we built this factory … we’ll be able to service them Canadian-made products without any exposure to either Sept. 8th (tariffs) or anything which might be looming ahead.”

The company is also positioned to benefit from an ongoing anti-dumping investigation by the Canada Border Services Agency involving Chinese-made paper cups and containers, Abrol said.

If the CBSA finds the paper packaging — used to serve hot or cold take-out drinks and food — is being sold at unfair prices in Canada, the packaging could face large duties.

Those potential anti-dumping duties could send the price of paper cups and containers from China skyrocketing.

“Some of the large customers … especially some of their distributors who are buying it directly from Asia … they’re in panic mode,” Abrol said. “And that’s why we’re in discussions with them.”

This report by The Canadian Press was first published Sept. 3, 2026.

Brett Bundale, The Canadian Press

by The Canadian Press

Canadian paper cup and bowl maker sees growing local demand amid tariffs

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