Washington: US President Donald Trump's tariff policies can sit down the country! Their proposed import duty (tariff) policy may cause crisis on the supply of toilet paper. This situation is reminiscent of the lack of toilet paper during the Kovid-19 epidemic, when the shopkeepers in panic evacuated the shelf of the shops. Apart from this, the prices of toilet paper can also increase. So after all, how can the tariff war cause toilet paper deficiency? Let's understand in detail:

Why will there be a shortage of toilet paper?

The Trump administration has proposed to impose 27% additional duty on the wood imported from Canada. This will directly affect the Northern bleached softwood craft pulp (NBSK), which is an essential raw material to make American toilet paper and paper towels. According to Bloomberg report, if additional fees are levied, the total tariff may exceed 50%.

About 10% of toilet paper is imported in the US, half of which comes from Canada. Canadian softwood pulp has some special properties, which cannot be easily replaced by American options.

Impact of lack of softwood pulp

Pulp is extracted from wooden chips. If the somil is closed due to tariffs on the Canadian wood, then the production of pulp will also be reduced. This will increase the cost of companies making toilet paper, resulting in a decrease in supply. If more than 50% import duty is levied on wood, it will have serious consequences:

• Danger of Somil Closure: According to Brian McClay (Chairman of TTOBMA), 'This will stop some sommils, which will reduce the supply of wooden chips'. Jean-French Samere (Head of the Quebec Forest Industry Council) said that Somils either run or shut down at full capacity-they cannot be easily adjusted.
• Impact on demand and supply: Softwood Sector works in a competitive market. Due to tariff, production will decrease, which will increase the price. The US is already leaving more than 14% fee on Canadian wood. This year it can increase by 27%. If there is an additional fee of 25%, the total tariff will reach 52%.
• Risk of national security check: Trump has initiated an investigation into national security risks associated with wood imports. This can result in more tariffs.

Trump's tariff war: What will be the effect?

Trump also waged a trade war against China in his first term. Now his new tariff policy can have a widespread impact on the global economy: the prices of many products including toilet paper may increase. Trump claims that tariffs will benefit American industries, but experts believe that there is no alternative to Canadian pulp. On April 2, Trump has declared this day as 'Mukti Day', when he will introduce new policies to reduce foreign trade deficit.