Mercosur-EU agreement reduces tariff and boosts Brazilian footwear exports
Lower tariffs ease access for Brazilian shoes, increasing export flow to the EU.
Source →The trace
How it reaches your house.
Starting from Footwear, we walked the supply graph hop by hop to the goods you buy and the companies you own. Each step is the engine’s reasoning, scored for confidence and cited where a source backs it.
First impact
Footwear →Prices riseEVA Copolymer (Footwear Midsole Foam)
Lower tariffs lift Brazilian footwear exports, which should raise production volume and push up demand and prices for this critical midsole input.
74% confidenceFootwear →Prices riseSynthetic Footwear Upper Material (PU/PET)
More export orders for footwear should increase procurement of upper materials, putting upward pressure on their price.
73% confidenceFootwear →Prices riseFootwear Rubber/TPU Outsole Compound
A larger export run of Brazilian shoes should raise demand for outsole compounds and make them somewhat tighter and more expensive.
Hop 2
Footwear Rubber/TPU Outsole Compound →Stands to benefitHigher Brazilian footwear exports lift demand for the outsole compound, and France is the largest listed source country, so it benefits most from the demand pull.
75% confidenceFootwear Rubber/TPU Outsole Compound →Stands to benefitSouth Korea (Republic of Korea)
A tariff-driven rise in Brazilian footwear output increases demand for the input, benefiting South Korea as a major source country for it.
75% confidenceFootwear Rubber/TPU Outsole Compound →Stands to benefitJapan supplies a substantial share of the compound, so higher footwear export volumes should modestly benefit Japanese suppliers.
Hop 3
Italy →Prices riseSynthetic Footwear Upper Material (PU/PET)
Lower tariffs lift Brazilian footwear exports, which raises demand for synthetic upper material; Italy supplies 15.7% of this input, so its market price faces moderate upward pressure.
56% confidenceFrance →Prices easeFootwear Rubber/TPU Outsole Compound
Cheaper Brazilian footwear can displace French/EU shoe output, softening demand for France-linked outsole compound and putting downward pressure on its price.
34% confidence