The impact of tariffs on the forest industry

International trade is undergoing upheaval due to geopolitical forces. The wave triggered by the new U.S. administration is reaching Finland and the forest industry as well. The Finnish Forest Industries Federation aims to provide the best possible situational overview for the industry amidst the rapidly evolving international trade and trade policy environment.

This continuously updated article compiles key current developments relevant to international trade in the forest industry and the impacts of changing tariffs.

In brief:

• An investigation is underway in the United States into the national security risks posed by imported timber.
• President Trump has also initiated a review aimed at boosting the efficiency of U.S. forestry and timber production.
• The U.S. has imposed 15% general tariffs on European products, which affect the Finnish forest industry both directly and indirectly.

Developments in 2025

Import tariffs affecting the sector:

• Pulp, paper, and board: 15%
• Bioenergy, raw wood, and some mechanical wood industry products excluded from tariffs

August 21: Excerpts from the United States–EU Joint Statement Framework Agreement:

• The United States commits to applying to European Union products whichever is higher: either the U.S. Most-Favored-Nation (MFN) tariff or a 15 percent tariff, consisting of the MFN tariff and a reciprocal tariff.
• The United States will seek to ensure that any tariff resulting from the ongoing Section 232 investigation on wood products does not exceed 15 percent.
• The European Union commits to working to address the concerns of U.S. producers and exporters regarding the EU Deforestation Regulation (EUDR), to avoid disproportionate impacts on trade between the United States and the EU.
• In addition to the recently agreed de minimis exemption, the European Commission commits to working towards greater flexibility in the implementation of the Carbon Border Adjustment Mechanism (CBAM).

August 12: U.S. President Donald Trump has decided to extend the tariff truce with China for 90 days, until November 9.

August 1: President Trump issued an executive order postponing by one week the implementation of the 15% import tariffs imposed on the EU. The new effective date for the tariffs is August 7.

Wood and restricted paper products excluded from the original reciprocal tariffs, as well as products covered by the Section 232 investigation, remain exempt from the new reciprocal tariff.

August 1: A new tariff level on EU export products to the United States, as agreed upon in the recent EU-US trade negotiations, is set to take effect. The United States will apply a maximum tariff of 15% on the majority of EU exports, including pulp, paper, and cardboard. Negotiations on the detailed terms of the final agreement are still ongoing.

Until the United States concludes its Section 232 investigation concerning wood products, the tariff on timber exports from the European Union to the United States is expected to remain at 0% for most wood-related goods. The European Commission will continue working with the United States to ensure that any future tariffs resulting from the investigation do not exceed the 15% threshold for the EU.

Tariffs and Agreements Initiated by President Trump:

• Negotiations with China are ongoing.
• Japan and South Korea: 15%
• Canada: 35%
• European Union: 15%
• BRICS countries: Brazil 50%, India 25%, South Africa 30%
• Mexico: Tariffs postponed for 90 days

July 28: The European Union and the United States have reached an agreement on tariffs. The import tariff rate set for the EU is 15 percent. The details of the agreement will become clearer in the coming weeks.

July 12: U.S. President Donald Trump announced 30 percent import tariffs on the European Union, set to take effect at the beginning of August. The EU has expressed its willingness to continue negotiations and postpone the implementation of its own countermeasures until 6 August to reach an agreement before August.

Import tariffs effective from August 1: Japan and South Korea 25 %, Brazil 50 %, Canada 35 %, EU 30 %, and Mexico 30 %, along with numerous other countries with varying rates.

July 9: The 90-day negotiation pause granted by President Trump in April ended today. However, instead of a deal or reciprocal tariffs, the U.S. administration announced that implementation of the tariffs would be postponed until early August. Negotiations between the EU and the U.S. continue in hopes of reaching a framework agreement.

June 11: Announcement of the approval of a framework agreement between the United States and China aimed at reducing trade tensions and concluding negotiations by August 12. If no agreement is reached, the tariff levels that were lowered in May will be reinstated.

May 12: The United States and China have agreed to freeze tariffs at a lower level for a period of 90 days. The United States will reduce tariffs on Chinese exports from 145 percent to 30 percent, while China will reduce tariffs on U.S. exports from 125 percent to 10 percent. The tariff reductions are to be implemented by May 14.

April 17: The U.S. has imposed tariffs on China in the maritime, logistics, and shipbuilding sectors. These actions may have indirect impacts on the logistics chains of the forest industry.

As of October 14 The U.S. will levy tariff fees on:

• Chinese shipping companies and operators based on vessel net tonnage
• Operators of Chinese-built vessels based on net tonnage or unloaded containers for ships arriving at U.S. ports. The fees are expected to increase gradually in the coming years.

April 14: The European Commission officially delays implementation of countermeasures related to aluminium and steel tariffs by 90 days, until July 14.

April 11: China has announced an increase in import tariffs on American products to 125%. These new tariffs will take effect on Saturday, April 12, 2025. According to the White House, the U.S. tariff rate on Chinese imports stands at 145%.

April 10: The European Commission responded to the U.S. delay in implementing general tariffs by announcing a 90-day postponement of its own countermeasures.

April 9 – Reciprocal Tariffs and Exemptions:
The U.S. introduced 20% reciprocal tariffs on April 9 but postponed their implementation the same day for a 90-day negotiation period. China, including Hong Kong and Macao, became subject to a 125% import tariff. In response, China imposed an 84% import tariff on all U.S.-origin products. Other countries were moved to a 10% general tariff, with exceptions defined under customs codes 9903.01.26–9903.01.34. Of relevance to the forest industry is code 9903.01.32, which includes bioenergy, raw wood, sawn timber, and various other wood products.

April 5 – General Tariffs on Imports from the EU Implemented:
The U.S. imposed a 10% general tariff on April 5. The tariff list includes paper, board, and pulp, while bioenergy, raw wood, and some mechanical forest industry products are excluded. In response, China announced 34% retaliatory tariffs on all U.S. products starting April 10. The EU expressed its readiness to negotiate but simultaneously prepared countermeasures to the U.S. tariffs. Industry associations responded: the Confederation of European Paper Industries (Cepi) and the European Confederation of Woodworking Industries (Cei-Bois) issued updated statements on the matter.

April 3: The U.S. imposed a 20% general tariff on all goods transported from the EU to the U.S. However, the implementation order excluded several forest industry products. Nevertheless, the general tariffs affect the Finnish forest industry both directly and indirectly. In 2024, the U.S. was Finland’s third most important export market. The uncertainty in the U.S. market has wider repercussions for the industry’s global trade.

March 26: President Trump imposed a 25% tariff on imported cars starting April 2. In a televised speech, he also mentioned tariffs to reduce reliance on imported timber.

March 12: The U.S. 25% import tariffs on all imported steel and aluminium came into effect. The European Union quickly published a Commission proposal for countermeasures and began stakeholder consultations. The countermeasure product list includes forest industry products. The Ministry for Foreign Affairs has requested comments from companies and organizations.

March 1: President Trump directed the U.S. Department of Commerce to investigate the national security risks associated with timber imports. This could provide a legal basis for new tariffs. The investigation will assess whether timber imports to the U.S. market are occurring at the expense of U.S. economic prosperity and national security. The investigation must be completed by November 26. President Trump also issued an order to strengthen U.S. forestry and timber production.