EU removes final tariffs on U.S. wood products following approval of transatlantic trade agreement

Published on June 23, 2026 Time: loading...

EU eliminates final tariffs on US wood products following ratification of transatlantic trade agreement - Wood & Panel USA

The European Union has officially eliminated its remaining tariffs on American wood-based industrial products after the European Parliament approved legislation implementing the long-awaited EU-U.S. trade agreement. The move represents a significant milestone for the global forest products industry and further strengthens trade ties between Europe and the United States.

In a vote held in Strasbourg earlier this week, members of the European Parliament approved the legislation by a margin of 440 votes to 151. The decision clears the way for the removal of the bloc’s remaining duties on selected U.S. wood products, including plywood, particleboard, and fiberboard.

These products had previously been subject to import tariffs of 7 percent. Under the newly ratified framework, those duties will be reduced to zero. The change places engineered wood panels alongside lumber, wood pulp, and paper products that already entered the European market duty-free.

The decision effectively eliminates the final EU tariffs on U.S. 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 significant for the timber and wood processing sectors. 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 challenges. Brussels secured assurances that any future U.S. tariffs on European lumber introduced under the pending Section 232 review will not exceed 15 percent.

Currently, lumber exports from Europe continue to enter the United States under a zero-percent most-favored-nation tariff rate. Engineered and derivative wood products already face duties of 15 percent when shipped into the U.S. market.

The United States remains a major supplier of pulp and paper products to Europe. Trade data from 2024 illustrates the scale of this commercial relationship. The European Union imported approximately 2.6 million metric tons of pulp and paper products from the United States during the year. By comparison, exports from Europe to the United States totaled roughly 2.3 million metric tons.

The largest trade imbalance was recorded in pulp. Europe posted a trade deficit of approximately 975,000 metric tons in this category, underscoring the importance of U.S. supply to European manufacturing and packaging industries.

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 said following the vote.

The path to ratification proved considerably longer than originally expected. 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 U.S. President Donald Trump made a series of controversial foreign policy statements earlier this year, including remarks regarding Greenland and warnings directed at Spain over 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 authority to request suspension of the tariff concessions if the United States maintains duties above 15 percent on European steel and aluminum beyond the end of 2026.

The vote also concludes a prolonged period of tariff uncertainty affecting the forest products sector. More than a year of trade tensions preceded the agreement’s adoption. In April of last year, Brussels warned that retaliatory duties could be imposed on American forest products in response to broad U.S. tariff measures.

Those proposed countermeasures will now be withdrawn. They are being replaced by the tariff-free access provisions incorporated into EU law.

The regulation includes a sunset clause. The current framework will expire at the end of 2029 unless it is 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 July 4.

Attention now turns to the Council of the European Union, which represents member state governments. Final approval is expected on June 26. Once endorsed, the legislation will take effect across the bloc.

Lange emphasized that the European Union retains the ability to restore standard trade restrictions if the United States fails to comply with the agreed terms. His comments were directed particularly at ongoing U.S. tariffs of 50 percent on European steel and aluminum products.

For the wood products industry, the agreement provides greater certainty and improved market access. It also reinforces the strategic importance of transatlantic trade in lumber, pulp, paper, and engineered wood products. Industry stakeholders are expected to closely monitor implementation as the agreement enters its next phase.