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 broad 20% general tariffs on European products, which affect the Finnish forest industry both directly and indirectly. However, the U.S. has granted a 90-day negotiation pause before the tariffs take effect.
• The European Commission is planning retaliatory tariffs on the U.S. but has frozen its plans for 90 days to allow for negotiations. The planned product list includes forest industry goods.
• The 90-day negotiation pause for the tariffs has expired and is now expected to extend into August.

Developments in 2025

Import tariffs affecting the sector:

• Pulp, paper, and board: 10%
• Bioenergy, raw wood, and some mechanical wood industry products excluded from tariffs

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.

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.