The EU launches the first batch of countermeasures in response to US metal tariffs. Chinese timber importers need to be alert to fluctuations in the trade chain

The European Union announced that it will impose additional tariffs of 25% on U.S. lumber and other commodities in phases starting from April 2025. Chinese importers need to be wary of price fluctuations caused by U.S. suppliers reselling to Asia, and focus on changes in trans-Pacific freight rates for construction materials such as Douglas fir.

EU launches first countermeasures in response to US metal tariffs

according toReutersThe European Union announced on Wednesday that it will launch its first batch of countermeasures next week in response to the tariff policy implemented by former President Trump. This move has escalated the global trade conflict between the EU, China and Canada.

Under the new measures, the EU will face US 25% tariffs on steel, aluminium and cars, and 20% tariffs on almost all other goods (currently delayed by 90 days).

In response, the EU will impose tariffs on a range of U.S. imports from next Tuesday - mostly 25% - specifically targeting U.S. metals duties. The EU is still assessing its response on cars and wider trade.

Targeted U.S. goods include lumber, corn, wheat, barley, rice, motorcycles, poultry, fruit, clothing and dental floss, according to documents reviewed by Reuters. Those imports totaled about 21 billion euros ($23 billion) last year, less than the 26 billion euros of EU metal exports currently subject to U.S. tariffs.

The EU measures will be implemented in stages, taking effect on April 15 and May 16, with the final stage taking effect on almonds and soybeans on December 1.

"These countermeasures can be suspended at any time if the United States agrees to a fair and balanced negotiated outcome," the European Commission said in a statement.

LumberFlow Expert Interpretation

Impact on Chinese timber importers:

The EU's imposition of 20% tariffs on US lumber will lead to a surge in the cost of US logs/planks exported to Europe, which may force more US suppliers to turn to the Asian market
According to 2024 data, the trade volume of wood products involved accounts for about 18% (about 378 million euros) of the total value of the EU counter-list, mainly affecting Douglas fir and southern pine, which are commonly used building materials in China.

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