The tariffs announced by the United States on April 2 represent a significant weakening in the international trade environment. As an important export sector for Finland, the forest industry also faces challenges due to potential tariffs.‍

“If implemented, such extensive and international tariffs on U.S. trade partners would alter trade flows, shift market competition dynamics, and complicate economic outlook assessments,” says Maarit Lindström, Chief Economist at the Finnish Forest Industries Federation.

Analyses from research institutions on the impact of tariff increases on both the international and U.S. economies are aligned: substantial tariff hikes weaken economic growth and drive up prices.

The United States – An Important Market for Finnish Forest Industry

In 2024, the United States was Finland’s third-largest export market for the forest industry, accounting for 9.2% (approximately €1.1 billion) of the sector’s total exports of €12.1 billion. While Finnish forest industry’s primary markets remain in Europe and Southeast Asia, uncertainty in the U.S. market affects the industry’s global trade.

“For the Finnish forest industry, free and rules-based international trade is a core value. We are closely monitoring developments as our sector’s products appear to be under special scrutiny by the U.S.,” Lindström states.

The latest executive order excluded certain forest industry product categories from U.S. tariffs. However, the investigation launched by President Trump in March into potential threats posed by forest product imports to U.S. national security—as well as efforts to boost domestic timber production and processing—could still result in additional tariffs on Finnish exports in the future.

European Industry Federations: Unrestricted Trade in Timber Products Benefits Everyone

European forest industry organizations have already prepared for potential tariff negotiations and countermeasures in response to Trump’s tariff increases. The Confederation of European Paper Industries (Cepi) has urged the European Commission to continue tariff negotiations to prevent disruptions in supply chains.

If further negotiations fail and the U.S. maintains the proposed tariffs, Cepi calls for swift and proportionate countermeasures from the EU. At the same time, the organization recommends that products essential to production chains be removed from the list of retaliatory measures.

The European Confederation of Woodworking Industries (Cei Bois) has similarly emphasized the importance of maintaining unrestricted trade in timber products between the EU and the U.S.