On December 3, 2025, the United States officially imposed a 15% tariff on hardwood timber exported from the European Union to the U.S. This rate represents the combined ceiling of tariffs under Section 232 and Most-Favored-Nation (MFN) treatment, as stipulated in the U.S.-EU trade agreement for EU wood products.
    Legal Basis: Rooted in Section 232, with Two Delays
    The tariff stems from an investigation conducted under Section 232 of the Trade Expansion Act of 1962. The U.S. Department of Commerce asserted that rising imports of lumber have undermined the competitiveness of domestic industries and jeopardized critical infrastructure and national defense needs, thereby constituting a "national security threat." The policy was signed by former President Trump on September 29, originally scheduled to take effect on October 1, then postponed to October 14, and finally confirmed by the European Organisation of Sawmillers (EOS) to be implemented on December 3.
    Scope of Application: Product Differentiation and Varied Treatment by Country
    In terms of products, the tariff covers EU hardwood sawn timber and certain wood products. Softwood is subject to a globally uniform 10% tariff. Although tariffs on hardwood-derived products—such as cabinets and bathroom vanities—are set to increase from 25% to 50%, EU-origin products benefit from the protective 15% cap.
    Regarding country-specific treatment, the EU and Japan enjoy the 15% tariff ceiling, the United Kingdom faces a 10% rate, while other countries may see tariffs on certain wood products rise as high as 50%.
    Multifaceted Impacts: Pressure on EU Firms, Potential U.S. Inflation
    EU exporters are already feeling the strain: hardwood exports to the U.S. have declined, with eurozone shipments in June falling over 10% year-on-year. The new 15% tariff will further squeeze profit margins for companies in Germany, France, and other EU member states. While U.S. domestic producers gain market protection, higher import costs could drive up prices for construction materials and furniture. Internally, the EU has expressed dissatisfaction with the agreement, and bilateral trade negotiations—particularly concerning wine and other goods—are expected to continue.
    With the formal implementation of the 15% U.S. tariff on EU hardwood, the complex mix of benefits and drawbacks suggests that U.S.-EU trade tensions are likely to persist over the long term.