US 25% tariffs weaken competitiveness of Brazilian paper and packaging exports in the North American market

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Key takeaways: A 25% US tariff on Brazilian exports is expected to reduce competitiveness across paper and packaging product categories. An additional 12.5% tariff could raise total surcharges to ...

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2654502094"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2654502094\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2654502094?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-07-27 12:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2654502094","market":"fut","top_or_hot":-1,"title":"US 25% tariffs weaken competitiveness of Brazilian paper and packaging exports in the North American market","media":"Fastmarkets","content":"<div>\n<p>Key takeaways:\n\nA 25% US tariff on Brazilian exports is expected to reduce competitiveness across paper and packaging product categories.\nAn additional 12.5% tariff could raise total surcharges to ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/https-www-fastmarkets-com-insights-us-25-tariffs-brazilian-paper-and-packaging-exports/\">Source Link</a>\n\n</div>\n","source":"fastmarkets_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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While Brazil is not the leading supplier of most of these products to the US, Brazilian producers are likely to […]","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SPXN":"Proshares S&P 500 EX-Financials ETF","ACWX":"iShares MSCI ACWI ex U.S. ETF","EBIZ":"Global X E-commerce ETF","BK4582":"ESG ETF-MSCI","ACSI":"American Customer Satisfaction ETF","HALX":"Tuttle Capital Heavy Assets Low Obsolescence ETF","SUPP":"TCW Transform Supply Chain ETF","DRES":"GMO Domestic Resilience ETF","VEXC":"Vanguard Emerging Markets Ex-China ETF","CLIX":"ProShares Long Online/Short Stores ETF","PRXI":"Praxis Impact International ETF","DISV":"Dimensional International Small Cap Value ETF","FFGX":"Fidelity Fundamental Global ex-U.S. ETF","SHPP":"PACER INDUSTRIALS AND LOGISTICS ETF","AMER":"Emles Made in America ETF","RKNG":"Defiance Retail Kings ETF","TISC":"Thrivent International Small Cap ETF","EUM":"ProShares Short MSCI Emerging Ma","IUSA":"Amberwave Invest USA JSG Fund","BINT":"Bluemonte Global Equity ETF","IBUY":"Amplify Online Retail ETF","SNTH":"MRP SYNTHEQUITY ETF","CORO":"ISHARES INTERNATIONAL COUNTRY ROTATION ACTIVE ETF","FXD":"First Trust Consumer Discretiona","CDIG":"City Different Investments Global Equity ETF","EWZS":"MSCI巴西小盘股ETF-iShares","RGLO":"Global Equity Active ETF","UCC":"ProShares Ultra Consumer Discretionary","RSEE":"Rareview Systematic Equity ETF","WLDR":"Affinity World Leaders Equity ETF","TRUI":"VanEck Industrials TruSector ETF","IYM":"基础材料ETF-iShares Dow Jones"},"translate_title":"美国25%的关税削弱了巴西纸张和包装出口在北美市场的竞争力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TISC":0.9,"UCC":1.5,"RKNG":1.5,"SUPP":1.5,"HALX":1.5,"WLDR":0.9,"ACWX":0.9,"IUSA":1.5,"DISV":1.5,"VEXC":1.5,"FFGX":1.5,"FXD":1.5,"AMER":1.5,"SHPP":0.9,"SNTH":0.9,"CORO":1.5,"EUM":1.5,"CDIG":0.9,"SPXN":1.5,"DRES":0.9,"RSEE":0.9,"IBUY":1.5,"EBIZ":1.5,"CLIX":1.5,"BINT":0.9,"RGLO":0.9,"ACSI":1.5,"PRXI":0.9,"EWZS":0.9,"IYM":1.5,"TRUI":1.5},"content_text":"Key takeaways:\n\nA 25% US tariff on Brazilian exports is expected to reduce competitiveness across paper and packaging product categories.\nAn additional 12.5% tariff could raise total surcharges to 37.5%, creating further export challenges.\nUncoated woodfree paper remains the main exception, with imports representing a significant share of North American demand.\nMarket participants expect countries facing lower tariff rates to gain relative advantages supplying the US market.\nBrazilian producers, including major exporters, may increasingly prioritize alternative markets as tariff-related uncertainty persists.\n\nThe implementation of the 25% tariff imposed by the US on Brazilian exports, effective Wednesday July 22, points to a shifting role for Brazilian paper and packaging products in the North American market.\nWhile Brazil is not the leading supplier of most of these products to the US, Brazilian producers are likely to lose competitiveness relative to exporters from countries subject to lower tariff rates.\nIt is worth noting that, separately, under another Section 301 investigation into forced labor, the US administration considered an additional 12.5% tariff on imports from 60 economies, including Brazil.\nThe measure, confirmed on Thursday July 23 and set to take effect on Friday July 24, raises the total surcharge on Brazilian products to as much as 37.5%, combining the newly imposed 12.5% tariff with the existing 25% duty and creating additional competitive challenges for Brazilian paper and packaging exports seeking access to the US market.\n“In most grades, paper imports from Brazil account for only a few percentage points of total imports, which themselves represent a relatively small share of US demand across many segments,” Derek Mahlburg, Fastmarkets director of North American graphic paper and packaging, said.\nThe main exception is uncoated woodfree (UWF) paper.\nUS Census trade data indicates that UWF imports accounted for around 16% of North American demand in 2026 — a record and equivalent to about 750,000 tonnes of offshore UWF imports into North America in 2026 based on current demand projections.\n“In 2024, Brazil accounted for 16% of UWF imports. The current share, at 8.5% of cumulative imports between January and May 2026, is likely due to the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), especially given Brazilian companies’ potential expectations of these duties eventually being overturned by the Supreme Court, which would have provided incentives to keep shipments low until that decision emerged in February. Indeed, US imports from Brazil climbed from only 3,667 tonnes per month through April to 13,919 tonnes in May,” Mahlburg said.\nOnce the 25% tariffs go into effect, Mahlburg believes that countries subject to lower tariff rates could benefit in supplying the North American market compared with Brazil, although the advantage will not be as pronounced as when tariffs stood at 50%.\nCanada is the largest exporter of UWF paper to the US, shipping 390,816 tonnes to the country between April 2025 and April 2026, according to the latest data compiled by Fastmarkets. Brazil, Indonesia and Portugal followed, with exports totaling 98,390 tonnes, 82,659 tonnes and 73,504 tonnes respectively during the same period. Thailand, South Korea, Germany and India also exported significant volumes.\nCompanies affected\nSources recently told Fastmarkets that Suzano, one of Brazil’s largest UWF exporters and who also faces anti-dumping duties in the US stacked on top of the broader tariffs, had already regarded the US as a volatile export market for its printing and writing papers.\nAs tariffs fluctuated between 10-50%, Fastmarkets learned from market sources that the company strengthened its presence in other markets, including Canada and countries across Africa, the Middle East and Asia, in anticipation of potentially reallocating export volumes.\nThe company declined to address the latest US measure when contacted by Fastmarkets for comment.\nSylvamo, the largest producer of UWF paper in North America, is also expected to be directly affected by the measure.\nDuring the US Trade Representative (USTR) hearing held on July 7, a representative of the company said that, under the administration’s current tariff framework, Sylvamo had made a strategic decision earlier this year to supply the US market with products manufactured at its Brazilian mills.\n“We did this because we did not have enough US production to meet the demand of our US customers. A 25% tariff would reverse this strategy and jeopardize an estimated $20 million-plus in earnings per year flowing back to our American operations,” the representative said.\nAccording to the hearing transcript, as the US UWF market continues to contract, Sylvamo expects to supply an increasingly larger share of demand from its US mills and become less reliant on imports from Brazil.\n“In the meantime, the question is whether the 15-20% supply gap gets filled by an American-owned company importing from its own Brazil mills or by foreign-owned producers in Asia and Europe,” the Sylvamo representative added.\nIn Mahlburg’s view, the company could choose to resume importing UWF from its European mills to supplement its US operations rather than sourcing product from Brazil — as it did in 2025, when tariffs imposed under the IEEPA were slightly higher than the 10% tariffs established under Section 122.\nA representative of Klabin, Brazil’s largest packaging paper producer, was also among the participants of the July 7 USTR hearing. During the proceeding, the company’s representative requested that three products be added to the exemption list: eucalyptus short-fiber kraftliner, aseptic liquid packaging board and industrial paper sacks made from extensible sack kraft paper.\n“These products are not manufactured domestically in the United States with equivalent characteristics, technical performance or sufficient volume. For this reason, imports are important for the American industries that use them as inputs,” the Klabin representative said at the hearing.\nAccording to US Census trade data, the US imported a relatively modest volume of kraftliner in 2025: 309,000 tonnes against domestic demand of 13 million tonnes. Of the total imported volume, shipments from Brazil amounted to 15,000 tonnes.\nUS imports of products classified under HS code 4810.92, which includes aseptic liquid packaging board, totaled 666,000 tonnes in 2025, of which 247 tonnes originated from Brazil.\nFor sack kraft paper, US Census trade data reported 507,000 tonnes of imports in 2025, with 15,000 tonnes supplied by Brazil.\nTissue trade implications\nIn the tissue segment, Fastmarkets’ tissue economist Philipp Jaki said that the vast majority of Brazilian tissue exports remain within the Latin American region.\n“Compared with other markets, US imports of Brazilian tissue are relatively small. Looking at 2025 data, volumes increased in the first quarter of 2025 but fell sharply after the United States raised tariffs on Brazilian products,” Jaki said, referring to volumes that declined from 11,606 tonnes in the first quarter of 2025 to 6,865 tonnes in the second quarter, 3,252 tonnes in the third quarter and just 186 tonnes in the fourth quarter of the same year.\nIn Jaki’s view, Latin America will likely remain the natural destination for Brazilian tissue exports, as Brazilian producers do not currently enjoy a sufficient cost advantage to compete with Asian tissue imports in Europe.\n“Recently, Brazilian tissue exports to Europe increased significantly, totaling 22,547 tonnes in the first quarters of 2026. Even so, European imports of tissue from Asia grew by much larger volumes,” Jaki said.\nIn Jaki’s assessment, Brazilian producers do not currently have enough of a cost advantage to compete with Asian tissue imports in Europe.\n“Only the European Union Deforestation Regulation (EUDR) could potentially affect Asian tissue imports, if those suppliers fail to meet the required documentation requirements. At the same time, the provisional entry into force of the European Union-Mercosur trade agreement would grant Mercosur countries ‘favorable consideration’ in the risk assessment conducted under the EUDR,” Jaki added.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}