President Donald Trump's trade war raises a warning between world paper suppliers – those that can lead to a terrible shortage of supermarkets in the United States faster than family: toilet paper.
Susano S, the world's largest source in the world, said that the American drawings disrupt the main raw materials used to make toilet paper and other hygiene products.
The Brazilian company, which produces the pulp of the solid wood, used by many American manufacturers, has told a 20 % decrease in exports related to the United States in April compared to the same time last year.
“In response to the definitions, we had to transfer the increasing costs to American buyers,” Joao Alberto de Abreio, CEO of Susano, told Bloomberg News.
The Sao Paulo -based company has warned that the ongoing commercial barriers may exacerbate the supply chain tensions and pay prices to the top.
Brazil, like other American merchant partners with the exception of China, is currently facing a 10 % global tariff on exports.
This warning comes at a time when memories of the 2020 toilet leaves remain, which ignited the purchase of panic and logistical lines related to the epidemic, fresh for many consumers.
While the current store shelves remain stored, industry analysts say it will not take much stability in the paper supply chain – especially if American buyers start storing in anticipation of more commercial turmoil.
The core industry already feels the effects. Susano shares decreased by up to 4.3 % during the trading on Friday in Sao Paulo, reaching its lowest level during the day since June, when investors' reaction to signs of tariff pressure was.
Susano executive officials say the uncertainty in customs tariffs offers contract and pricing negotiations. Lionardo Grimaldi, CEO of the company, said during a profit call that the entire industry entered a stage of instability.
Grimaldi said: “Since customers are still struggling to predict how definitions can affect their production plans, either directly or indirectly, all the buyers of the pulp and sellers are in a price discovery mode.”
Susano is not alone in raising fears. Many other international suppliers reported the possibility of new bottlenecks in basic commodities if the battle of tariffs escalated.
The company's warnings also shed light on a broader direction: The risk of commercial conflicts, which focus as soon as they focus on luxury or luxurious goods, are now decisive commodities for daily life.
Brazil, one of the largest PULP producers in the world, has become a flash point in the latest commercial skirmishes.
As long -distance walking in the United States via a set of imports as part of Trump's commercial aggressive policy, Brazilian exporters are scrambling to protect its market share while moving in high costs.
Susano, who was a major resource during the toilet paper crisis dating back to the era of the epidemic, says she is working to adapt. But the company warns that pressure from the customs tariff can create the effects of ripples that hit American consumers where it matters: the bathroom.
“The pulp is not just another commodity,” Abro said. “It is at the heart of some of the basic products that we use every day.”
Last month, Apollo Global Management warned that American store shelves may be empty within weeks due to Trump's sharp tariff on Chinese goods, which may lead to stagnation by summer.
The chief economist in Apollo Torstein Silok has identified a schedule showing how supply chain disorders will lead to lack of products, retailers, and demobilization of workers in both truck and retail transport sectors.
The schedule predicts that the Trump tariff will stop Chinese charges by mid -May, which leads to empty stores and sales decline by late May, which leads to demobilization and retail and pushing the United States to recession by the summer of 2025.
While some analysts warn that the current inventory may delay the visual effects, Slok predicts that “Covid's similar shortage” where the goods stop China from reaching and the economy stops.
The post arrived at the White House for comment.
