Analysts say Trump tariffs could disrupt pulp, packaging sector

Ball

04/02/2025 14:40

** Citigroup says U.S. President Donald Trump's tariffs
could likely disrupt supply chain for beer cans and glass
bottles in the U.S., potentially affecting companies like Ball
Corp  BALL.N  and Crown Holdings  CCK.N  with operations in
Mexico
    ** Trump imposed tariffs on its top trading partners Canada
and Mexico on Saturday, but later suspended them until Mar. 1
    ** Brokerage says glass bottles and jars maker O-I Glass Inc
 OI.N  could also see impacts to its revenue from its Mexican
glass bottle production unit
        ** Separately, BofA sees potential short-term
disruptions in Mexican alcohol imports impacting companies like
BALL and OI, but expects domestic brands to offset some losses
by inventory management and shifts in market share
        ** Citigroup sees tariffs potentially increasing costs
for Canadian-produced containerboard and pulp
    ** Similarly, BofA sees tariffs on Canadian pulp imports,
especially NBSK pulp (made from softwood trees), driving up
prices and potentially shifting the supply chain to alternative
sources
    ** BALL beat Q4 profit estimates on Tuesday; OI and CCK to
report this week

 (Reporting by Rashika Singh in Bengaluru)
 ((rashika.singh@thomsonreuters.com))