Exchange rate and US softwood plywood import from Brazil

In this paper, we investigate the effect of the exchange rate on U.S. softwood plywood imports from Brazil be-tween 2010 and 2021. Using the Equilibrium Displacement Model, we find that the pass-through effect of the U. S. Dollar's appreciation is more perceptible to U.S. consumers when facing a relatively elastic export supply curve from Brazil. Our results suggest that although the U.S. Dollar's strengthening against the Brazilian Real had a detrimental effect on domestic producers of softwood plywood, the consumer's gains more than offset those losses.