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New U.S. tariffs on Chilean timber strain US$1.18 billion in shipments

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A new report from the Forestry Institute (Infor) detailed the impact that the decision announced by U.S. President Donald Trump to impose an additional 10% tariff on imports of coniferous woods and derived products will have for Chile.

The measure took effect on October 14, 2025, and is based on an investigation that concluded these imports affect domestic production and U.S. economic security. The announcement significantly alters a trade scenario that, for over two decades, was sustained by the benefits of the Free Trade Agreement between both countries.

According to Infor's analysis, the consequences will be especially relevant for the Chilean forestry sector. In 2024, exports of wood products to the United States reached US$1,180.8 million. Of this total, 83.1% —equivalent to US$980.8 million— corresponds to Chapter 44, precisely the group of goods that will be subject to the new tariff. Other segments include 16.9% (US$199.2 million) in unaffected products and a marginal 0.1% (US$0.8 million) from Chapter 94.

The report details that between January and August 2025, shipments showed a 0.9% increase compared to the same period in 2024, with a 2.6% rise in the products that will now be taxed. Chilean export offerings to the United States include moldings, plywood panels, MDF moldings, glued panels, and Finger Joint wood, goods with a strong value-added component and an established presence in the North American market.

In 2024, Chile represented 2.4% of total U.S. forestry imports and positioned itself as the main supplier of coniferous plywood panels. However, the Infor report indicates that international competition was already strained, as countries like Canada, Brazil, China, and New Zealand face even more severe tariff measures under different executive orders. Therefore, although the decision directly affects Chile, it does not significantly alter its relative position against these competitors, but it does reduce its competitiveness against U.S. domestic production.

Despite this scenario, Infor highlights that there are appeal instances where Chile could present arguments to be recognized as a strategic partner. Among them, the complementary nature of Chilean exports —mainly focused on decorative and finishing products— and the presence of national investments in U.S. territory that generate employment and value chains.

While the industry awaits definitions and potential mitigation measures, the Infor report concludes that the Chilean forestry sector must prepare for a more challenging trade environment, where market diversification and defending preferential access to the U.S. market will be key to maintaining its competitiveness.