Suzano CEO Says US Tariff Exemption Supports Brazilian Pulp Exports Amid Economic Headwinds

Suzano Chief Executive Officer Beto Abreu said the continued exemption of pulp from the United States' new 25% tariff measures provides important support for Brazilian exports, while warning that high interest rates and global economic uncertainty continue to pose challenges for the sector.

Speaking in an interview with CNN Money's Capital Insights programme, Abreu said Brazil supplies around 80% of the pulp imported by the United States, underlining the North American market's dependence on Brazilian production. Suzano, which accounts for approximately 20% of the global pulp market across all fibre types and about two-thirds of the short-fibre supply, sends roughly 20% of its exports to the US.

Although pulp remains exempt from the latest US tariff measures, Abreu said the company continues to face challenges related to logistics, exchange-rate volatility and fluctuating oil prices in an uncertain global economic environment.

Commenting on Brazil's domestic market, the executive said elevated interest rates and high household indebtedness have weakened consumption, affecting demand in the paper and consumer goods segments. While Suzano's financial position benefits from its export-oriented business model and debt denominated in US dollars, Abreu cautioned that prolonged high real interest rates could weigh on the country's long-term competitiveness.

"Remaining with real interest rates at the current level for too long is a problem. The impact on investments and on the generation of competitiveness and value in the long term is very negative," he said.

On sustainability, Abreu rejected suggestions that companies are retreating from environmental commitments, arguing that businesses are simply "making less noise" about their initiatives. He said half of Suzano's debt is linked to sustainability targets, while the company generates 100% of its own energy consumption. He also noted that Suzano plants approximately 1.2 million trees each day and said its products reach around 2 billion people daily.