US Tariffs Reshape EU Trade; Lumber Exempt for Now
European lumber stays tariff-free as US tariffs hit other sectors
On August 7, the US began enforcing sweeping new tariffs on the European Union, marking a major shift in transatlantic trade policy, Wood & Panel Europe reported (8-11-25). An executive order signed by President Donald Trump applies a uniform 15% duty to most EU exports. However, lumber remains a temporary exception.
The European Commission’s Directorate-General for Trade stated:
“Regarding lumber, until the US completes its Section 232 investigation—which, in fact, remains the case—the tariff rate applicable to lumber exports from the EU to the US should be equal to the US most-favored-nation tariff rate (which is 0% for lumber), with no additional tariff imposed. We continue to engage with the US to ensure that any future additional tariffs imposed under the ongoing Section 232 investigation against the EU do not exceed 15%.”
This preserves duty-free access for European sawnwood until at least November 26, when the Section 232 investigation is scheduled to conclude, according to Wood & Panel Europe. By contrast, engineered wood products already face a 10% tariff and could soon be subject to 15%.
The August 7 tariffs follow a political understanding reached July 27 between European Commission President Ursula von der Leyen and President Trump. The agreement is not legally binding and still requires ratification by EU member states and institutions. Key elements include:
- A 15% tariff on most EU exports, including cars, semiconductors, and pharmaceuticals.
- Zero-for-zero tariffs on strategic goods such as aircraft and parts, selected chemicals, some generic medicines, semiconductor manufacturing equipment, certain agricultural items, and critical raw materials.
- Continued 50% tariffs on steel and aluminum, with a quota system to be implemented.
- Stronger energy cooperation, with Europe pledging increased imports of US LNG, oil, and nuclear fuel.
- US exports of advanced AI chips to support European AI development while sustaining US technological leadership.
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