Trump Slaps Tariff Bomb on Canadian Lumber
American Consumers Anxious Over Tariff Hikes
As American consumers, concerned about price increases due to U.S. President Donald Trump's tariff policies, have started stockpiling goods, an analysis has emerged that the "toilet paper" supply could face a crisis caused by the Trump-induced tariff bomb. On the 31st, Bloomberg reported that President Donald Trump’s tariff hike on Canadian softwood lumber could disrupt toilet paper production.
Empty toilet paper shelves at a major U.S. supermarket during the large-scale port union strike in 2024. Screenshot from SNS.
According to Trump's announcement, the current tariff on Canadian softwood lumber, which stands at about 14%, is expected to rise to 27% this year. Additionally, if a 25% extra tariff is imposed on most Canadian products, the total rate would reach approximately 52%. There is also a possibility of further tariff increases depending on the results of a "national security" investigation into lumber imports. Bloomberg cited industry insiders and experts, pointing out that this measure could impact the supply of northern bleached softwood kraft pulp, which is essential for producing toilet paper and kitchen towels. Bloomberg particularly warned that such import tariffs could force U.S. pulp mills to shut down and could lead to shortages and price hikes of finished toilet paper products, similar to the early 2020s COVID-19 pandemic.
Especially, the general view among U.S. insiders is that it is not easy to replace the approximately 2 million tons of pulp currently imported from Canada. Canadian pulp accounts for the majority of U.S. supply, and many American paper mills have adjusted their production processes to use products from specific Canadian paper mills. Frederick Vero, vice president of a lumber processing company based in Quebec, Canada, explained in an interview with Bloomberg, "The reason the U.S. buys our products is not because we are pretty," adding, "Our products are the best and fit their mills the best."
More than half of Americans say "Trump is overly focused on tariffs... neglecting inflation"
Meanwhile, as President Trump is scheduled to announce reciprocal tariffs on the 2nd of next month following tariffs on steel and automobiles, half of the American public believes that President Trump is overly focused on tariff issues. A significant number of Americans expect prices to rise due to tariffs, and public expectations that the economy will improve under the Trump administration have significantly declined compared to the start of his term in January.
CBS conducted a survey of 2,609 American adults on the 27th and 28th and released the results on the 30th (local time). Fifty-five percent of all respondents said that President Trump is "overly" focused on tariff issues. Only 7% said he is not focused enough on tariffs. In contrast, regarding inflation, 64% said he is "not focused enough," a significantly higher proportion. Regarding the impact of tariffs on prices, 77% predicted a "short-term increase," and 47% expected a "long-term increase."
Earlier, concerns about the tariff bomb that U.S. President Donald Trump has been repeatedly warning about have led American consumers to purchase more goods than usual, according to a survey. Around February, Credit.com, a U.S. consumer research firm, announced that one in five Americans were stockpiling goods due to worries about price increases caused by tariff hikes. Getty Images·Yonhap News
Earlier, a survey revealed that American consumers have been purchasing more goods than usual due to concerns over the tariff bomb repeatedly emphasized by President Donald Trump. Around February, Credit.com, a U.S. consumer research firm, announced that one in five Americans was stockpiling goods out of concern for price increases caused by tariff hikes. This means that anticipating rising import prices due to tariffs, consumers are preemptively stocking various items. Major U.S. retailers observed a sharp decline in inventories of essential daily items such as toilet paper, food, and medical supplies. The Wall Street Journal (WSJ) reported that stockpiling has expanded to home appliances such as vacuum cleaners, TVs, and audio equipment. Consumers, predicting a high likelihood of import price increases due to tariff policies, are replacing existing appliances with new ones in advance.
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