A major shift in EU–US trade policy has begun on August 7 2025, as the United States enforced new import tariffs on nearly all its trading partners, including the European Union.
The change stems from an Executive Order signed on July 31 2025 by US President Donald Trump.

Under this order, a uniform 15% tariff will apply to most EU exports, covering industries from automotive to semiconductors. However, timber is a special case.

Timber: Duty-Free for Now
The Directorate-General for Trade of the European Commission has confirmed that:

“Regarding lumber, until the United States completes its Section 232 investigation—which, in fact, remains the case—the tariff rate applicable to lumber exports from the European Union to the United States should be equal to the U.S. most-favored-nation tariff rate (which is 0% for lumber), with no additional tariff imposed. We continue to engage with the United States to ensure that any future additional tariffs imposed under the ongoing Section 232 investigation against the European Union do not exceed 15%.”

In practice, this means European sawn timber remains tariff-free until at least late November, when the ongoing Section 232 investigation is due to conclude.

Engineered wood products are a different matter. They already face a 10% US tariff and could soon be subject to 15%.

Political Agreement – 27 July 2025
Just days before the tariff announcement, President Ursula von der Leyen and President Donald Trump reached a political understanding on trade terms.
It is important to note that this is not yet legally binding. Member states and EU institutions still need to confirm the details.

Key points of this agreement include:

15% uniform tariff on most EU exports, including cars, semiconductors, and pharmaceuticals.
Zero-for-zero tariffs on strategic goods such as all aircraft and parts, some chemicals, certain generic medicines, semiconductor manufacturing equipment, selected agricultural items, natural resources, and critical raw materials.
Steel and aluminium remain subject to a 50% tariff, with a new quota system planned.
Strengthened energy cooperation, with the EU agreeing to increase imports of US LNG, oil, and nuclear fuel.
US AI chip exports will support EU AI manufacturing while sustaining US technological leadership.

Wood Products: Still Under Review
Most wood products were excluded from the initial US tariff proposals of April 2025, known informally as “Liberation Day”. There remains no confirmed tariff level for these products under the July political deal.

Since 1 March 2025, the US has been conducting a Section 232 market investigation into wood and wood products. Until its conclusion on 26 November 2025, products under review are generally exempt from tariff changes.

EU officials note that:

“Regarding lumber, until the United States finalises its Section 232 investigation, which indeed continues, the tariff rate applicable for lumber exports from the European Union to the United States should remain the United States Most Favorite Nation rate (which is 0% on sawnwood) with no additional duty on top. We keep engaging with the United States to ensure that potential future additional tariffs resulting from the ongoing Section 232 investigation would not exceed 15% for the European Union.”

This indicates a worst-case tariff cap of 15% for EU lumber, even if new duties are introduced after the investigation.

Non-Tariff Trade Barriers
As part of the wider negotiations, the EU has committed to addressing US concerns about non-tariff barriers.
These include streamlining EU regulatory requirements for US exporters, reducing administrative burdens, and reassessing measures such as the EU Deforestation Regulation (EUDR), which had been flagged by the US as an obstacle.

Industry Outlook
For EU timber exporters, the next three months are a period of watchful stability. The absence of tariffs on sawn timber maintains market access, but the pending US investigation keeps the possibility of change alive.

Engineered wood exporters face a probable increase in tariffs to 15%, adding cost pressures to an already competitive market.

The final shape of EU–US trade in the wood sector will depend heavily on the outcome of the November Section 232 report and whether the July political framework becomes binding law.

Source: woodandpanel.com