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Forestry Shipments Grow Driven by Demand from China and the U.S., the Key Players in the Trade War

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Demand from China and the United States, countries at the center of the trade war, drove the growth of Chilean timber exports in the first months of the year.

Forestry shipments reached US$1,602.5 million in the first quarter of 2025, a 4.9% increase compared to the same period the previous year. This was reported by the Forestry Institute (Infor) of the Ministry of Agriculture, which noted that this result reinforces the positive trend observed in 2024, when the sector closed with shipments totaling US$6,370.7 million, a 14.7% rise from 2023.

The main exported product was chemical pulp, with US$904.9 million, accounting for 56.5% of the total.

Destinations

Regarding export destinations, China solidified its position as the top market with purchases worth US$607.2 million, a 3.2% increase. This amount represented 37.9% of total shipments abroad.

The United States followed with US$288.4 million, equivalent to a 5.4% rise and 17.9% of total shipments. Thus, the Asian nation and the U.S. market accounted for nearly 56% of purchases from Chile.

Further behind was Mexico, which despite an 8.9% drop in purchases, totaled US$84.9 million by March. Next were South Korea, with US$68.6 million and a 3.2% increase, and the Netherlands, with US$61.8 million and a 52.3% surge.

"These results reflect the sector's efforts to maintain competitiveness in a complex international scenario. Demand from key markets like China has been crucial in sustaining the dynamism of our exports," said Agriculture Minister Esteban Valenzuela.

Infor explained that the shares of China and the U.S. in Chilean forestry exports show different trends. In the case of the Asian country, an upward trend has been observed since 2021, when it accounted for 28.9% of purchases in the first quarter—a figure that now stands at 37.9%.

On the other hand, the U.S. share, "while showing some variations in recent years, remains within usual ranges," it added.

Tariff Dispute

Facing global challenges such as U.S.-imposed tariffs, economic slowdown, and environmental demands from developed markets, the executive director of the Forestry Institute, Sandra Gacitua, stated that "the Chilean forestry sector has the capacity to adapt and remain a key driver of the national economy."

She added that "forestry exports are expected to remain at levels similar to those seen in recent years during 2025. However, given the current trade war scenario and uncertainty about tariff developments in key markets, cautious projections are advisable."

She noted that "for now, it is not possible to accurately predict a year-end figure, as it will largely depend on international trade performance in the coming quarters."

Infor explained that so far, no Chilean forestry products have been affected by U.S.-imposed tariffs. However, they clarified that this could change, as on March 1, President Donald Trump requested the Commerce Secretary to initiate an investigation under the Trade Expansion Act to determine whether timber imports pose a threat to national security.

Source: El Mercurio