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Boxing machines Boxing machines are seen in the manufacturing facility of Eco Guardian in Aurora, Ont., on Wednesday, Sept. 2, 2026. THE CANADIAN PRESS\/Keito Newman
<\/p>\nMaralee speaks with Fletcher Baragar from the University of Manitoba about how fast consumers will feel the impact of tariffs. <\/p>\n
A Canadian paper cup and bowl manufacturer is seeing growing demand from foodservice customers across the country as tariffs prompt coffee chains and fast-food restaurants to seek out more Canadian-made take-out packaging.<\/p>\n
Eco Guardian Inc., which makes compostable and recyclable cups and bowls in Aurora, Ont., is one of a number of Canadian manufacturers poised to expand domestic business amid the escalating trade war between Canada and the U.S. <\/p>\n
The company has received so many requests from potential new customers in the past two weeks that even if only half turn into orders it will be extremely busy, Eco Guardian founder and CEO Anil Abrol said in an interview. <\/p>\n
\u201cThis has fast-tracked our growth,\u201d said Abrol. \u201cWe\u2019re bringing the equipment on faster and building up our capacity.\u201d<\/p>\n
The situation highlights the effect of the trade war on Canadian manufacturers, with some companies emerging as potential beneficiaries.<\/p>\n
Boxing machines Boxing machines are seen in the manufacturing facility of Eco Guardian in Aurora, Ont., on Wednesday, Sept. 2, 2026. THE CANADIAN PRESS\/Keito Newman
<\/p>\n
However, the slate of so-called tariff winners may be small, and could shift as the trade tussle unfolds. <\/p>\n
Eco Guardian recently opened its new facility north of Toronto with the capacity to produce more than a billion paper cups a year.<\/p>\n
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. <\/p>\n
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.<\/p>\n
Despite becoming more appealing to Canadian restaurants and cafes, Eco Guardian has dealt with challenges in the U.S. due to tariffs. <\/p>\n
\u201cThere\u2019s a 50 per cent tariff that started,\u201d Abrol said. \u201cMy team told me there\u2019s one container which they have shipped … the container value might be $25,000 (and) there\u2019s a tariff of $14,000.\u201d<\/p>\n
One of the company\u2019s 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\u2019s product, he said. <\/p>\n
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. <\/p>\n
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.<\/p>\n
\u201cOur supply from Asia will continue to them,\u201d Abrol said. \u201cWe will not suffer any sales loss.\u201d<\/p>\n
Still, the company\u2019s plan to grow its U.S. market share is on pause. <\/p>\n
\u201cWe may see our exports to U.S.A. reducing a bit or not increasing the way we have planned it,\u201d he said. \u201cBut the Canadian large customers for whom we built this factory … we\u2019ll be able to service them Canadian-made products without any exposure to either Sept. 8th (tariffs) or anything which might be looming ahead.\u201d<\/p>\n
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. <\/p>\n
If the CBSA finds the paper packaging \u2014 used to serve hot or cold take-out drinks and food \u2014 is being sold at unfair prices in Canada, the packaging could face large duties.<\/p>\n
Those potential anti-dumping duties could send the price of paper cups and containers from China skyrocketing.<\/p>\n
\u201cSome of the large customers … especially some of their distributors who are buying it directly from Asia … they\u2019re in panic mode,\u201d Abrol said. \u201cAnd that\u2019s why we\u2019re in discussions with them.\u201d<\/p>\n
This report by The Canadian Press was first published Sept. 3, 2026.<\/p>\n
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