The attack on Canadian lumber from coniferous trees, proposed by US President Donald Trump, could disrupt the toilet paper supply chain.
As Ukrinform reports, Bloomberg reports.
The Trump administration plans to double the rate on Canadian softwood lumber to 27%, with the possibility of additional levies that could raise tariffs to over 50%.
Although Trump often advocates new policies to boost American production, they may also be affected by the availability of softwood sulfate pulp (NBSK), a key component for the production of toilet paper and paper towels, write Bloomberg.
According to Brian McClay, a general manager at TTOBMA, which oversees the light pulp market, NBSK will produce approximately 30% of a standard toilet paper and half a standard paper towel, and will immediately ship from Canada. He added that the US imported close to 2 million tons of Canadian NBSK, which reinforces the long-standing stockpile of American paper producers from Canadian pulp.
The material is available, which means that the United States on lumber from Canada may provoke a shortage of toilet paper, similar to the situation that occurred during the coronavirus pandemic. Moreover, tariffs may cause price increases for a given product.
Mita also causes a cascading effect on the supply chain. Increases in the yield of lumber can lead to a decrease in activity, resulting in less wood being harvested and, as a result, a change in the supply of wood cod needed for production cellulose. This deficiency could potentially lead to an increase in production costs for textile producers and production costs.
McClay said that since the importation of lumber has increased by about 50%, sawmills will employ robots to change the position of the cod.
“The tree fragments that are not cut down for pulp production in Canada are deposited as surplus cod from sawmills. It’s crazy to advance varity and, incredibly, to change the obligations of production,” he explained.
As reported by Ukrinform, Canada has mirrored the provision of a 25% import tax to the United States.