The European pulp and paper sector is facing new uncertainty with the announcement by the US administration of 25% tariffs on certain products imported from the European Union. According to Cepi, the organization representing the European pulp and paper industry, these measures could cause major disruption to a market that relies on regular trade flows between the two continents.
A sector exposed to higher costs
The European Union exports around 1.6 million tonnes of paper and cardboard to the United States every year. Conversely, it imports almost 900,000 tonnes of American pulp, according to Cepi figures. The application of tariffs could therefore increase the cost of raw materials for European manufacturers, while making their exports less competitive.
Tony Smurfit, Chief Executive Officer of packaging and paper giant Smurfit WestRock, spoke to The Irish Times that these measures threaten the Group's Mexican plants as well as its Canadian site, affecting between 3,000 and 4,000 employees.
Europe prepares its response
Faced with this escalation, the European Commission has launched a consultation to determine which American products could be subject to retaliatory measures. The list will be submitted to member states by March 26, with possible application in mid-April. The aim, according to the Commission, is to respond in a timely manner to the situation "proportionate" while protecting the interests of European industries.
Impact on strategic sectors
The consequences of the tariffs would not be limited to the paper industry. The pharmaceutical industry, which uses a lot of cardboard packaging, could also be affected.
Cepi General Manager Jori Ringman regrets this turn of events. "It's not just about the competitiveness of our sector, it's also about the supply of basic hygiene products, workers in EU and US mills losing their jobs, and repercussions for the wide range of sectors using paper packaging on both sides of the Atlantic." he explained in a press release.
Tony Smurfit also warned of the knock-on effects on other segments of the packaging industry, which could affect both food packaging in Italy and champagne packaging in France.
Jori Ringman, meanwhile, is calling for a rapid resumption of talks to avoid a breakdown in supply chains and a loss of jobs in the industry.
