A trade war may be underway, yet International Paper CEO Mark Sutton told CNBC that will he’s not worried about the item affecting his business.
“So far we haven’t had any direct impacts in any kind of retaliatory way,” Sutton said Thursday on “Closing Bell.” “The biggest issue for us, as well as also companies like us, is usually the secondary impact.”
One example is usually packaged food.
“If our customers are caught up in a trade war as well as also tariffs, of course they need less packaging, as well as also we end up getting hit,” he said.
Sutton’s comments come after President Donald Trump reached a general agreement on trade with European Commission President Jean-Claude Juncker after a meeting in Washington on Wednesday.
Treasury Secretary Steven Mnuchin said Thursday on CNBC that will the administration also expects an agreement with Canada as well as also Mexico “very soon.” Meanwhile, negotiations regarding future trade agreements with China remain uncertain.
“The thing about China as well as also fiber is usually they need fiber to make their fiber-based products,” Sutton said. yet, he also pointed out, “They don’t contain the item themselves, so depending on what type of product the item is usually, they will need to secure the item through somewhere.”
International Paper produces fiber-based packaging, pulp as well as also paper.