The European Union has formally removed its remaining tariffs on American wood-based industrial products after the European Parliament approved legislation implementing the long-awaited EU-US trade agreement. The move marks a significant development for the global forest products sector and further strengthens transatlantic trade relations.
In a vote held in Strasbourg earlier this week, Members of the European Parliament backed the legislation by 440 votes to 151. The approval clears the way for the elimination of the bloc’s final duties on selected American wood products, including plywood, particle board and fibreboard.
The affected products had previously faced import duties of 7 per cent. Under the newly ratified framework, these tariffs will be reduced to zero. The measure places engineered wood panels alongside sawn timber, wood pulp and paper products that already entered the European market without customs duties.
The decision effectively removes the last remaining EU tariffs on US industrial goods covered by the agreement. According to European institutions, the broader package is expected to generate annual savings of approximately €5 billion for European importers across all qualifying American products.
The development is particularly important for the timber and wood processing industries. Trade flows between the two economies are expected to become more efficient. Market access conditions have also become more predictable.
For European exporters, however, the agreement presents both opportunities and limitations. Brussels secured assurances that any future US tariffs on European lumber introduced under the pending Section 232 review would not exceed 15 per cent.
At present, sawn timber exports from Europe continue to enter the United States at a zero per cent most-favoured-nation tariff rate. Engineered and derivative wood products already face duties of 15 per cent when shipped into the American market.
The United States remains a major supplier of pulp and paper products to Europe. Trade figures from 2024 highlight the scale of this commercial relationship. The European Union imported approximately 2.6 million tonnes of pulp and paper products from the United States during the year. In comparison, exports from Europe to the United States totalled around 2.3 million tonnes.
The largest imbalance was recorded in pulp. Europe registered a trade deficit of roughly 975,000 tonnes in this category, underlining the importance of American supply to European manufacturing and packaging sectors.
European Commission President Ursula von der Leyen welcomed the parliamentary approval. She reiterated the EU’s commitment to implementing the terms negotiated with Washington.
“A deal is a deal — and the EU is delivering its part,” von der Leyen stated following the vote.
The path to ratification proved considerably longer than originally anticipated. Political tensions between Brussels and Washington contributed to delays throughout the approval process.
Bernd Lange, Chair of the European Parliament’s trade committee and one of the bloc’s leading trade policymakers, pushed for additional safeguards before supporting the agreement. Concerns intensified after US President Donald Trump made a series of controversial foreign policy statements earlier this year, including remarks concerning Greenland and warnings directed at Spain regarding its opposition to American military action against Iran.
Following negotiations, a compromise was reached last month. Under the arrangement, the European Parliament will have the ability to request suspension of the tariff concessions if the United States maintains duties above 15 per cent on European steel and aluminium beyond the end of 2026.
The vote also concludes a prolonged period of tariff uncertainty affecting the forest products industry. More than a year of trade tensions preceded the agreement’s adoption. In April last year, Brussels warned that retaliatory duties could be imposed on American forest products in response to broad US tariff measures.
Those proposed countermeasures will now be withdrawn. They are being replaced by the tariff-free access provisions incorporated into EU legislation.
The regulation includes a sunset clause. The current framework will expire at the end of 2029 unless renewed by policymakers. The provision was strengthened by Members of Parliament as trade relations became increasingly strained during negotiations.
Additional pressure emerged earlier this year when Trump indicated that further tariff increases could be considered if EU institutions failed to complete ratification before 4 July.
Attention now shifts to the Council of the European Union, which represents member state governments. Final approval is expected on 26 June. Once endorsed, the legislation will enter into force across the bloc.
Lange emphasised that the European Union retains the ability to restore standard trade restrictions if the United States fails to comply with agreed conditions. His comments were directed particularly at ongoing American tariffs of 50 per cent on European steel and aluminium products.
For the wood industry, the agreement delivers greater certainty and improved market access. It also reinforces the strategic importance of transatlantic trade in timber, pulp, paper and engineered wood products. Industry stakeholders will now closely monitor implementation as the agreement moves into its next phase.
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