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Forestry Guilds Warn of Impacts from U.S. Tariffs

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Leaders of the Chilean Wood Corporation (Corma) and the Guild Association of Small and Medium-Sized Wood Industries (Pymemad) expressed their concern about the impact that the increase in tariffs on imports of Chilean wood and forestry products by the United States will have.

In the most recent tariff decree signed by U.S. President Donald Trump on July 31, Chile was not included, so the 10% tariff on imports of Chilean goods announced by the White House in April remains in place. This new rate, which replaces the current zero tariff, will take effect tomorrow, August 7.

Currently, the United States is the second most relevant destination for Chilean forestry exports, accounting for 18.5% of the total, primarily in moldings, panels, glued products, and sawn wood. Many of these products face a potential investigation under Section 232 of U.S. legislation, which could lead to new tariffs on "national security" grounds.

Impact on Ñuble

The forestry sector contributes 14% of Ñuble's GDP, generates over 9,700 jobs in the region, and represents more than 65% of its exports, totaling $772 million in 2024. Notably, the main products exported by Ñuble to the United States in 2024 were wood panels ($103 million) and plywood ($62 million).

Lorena Vargas, vice president of Pymemad Biobío-Ñuble, asserted that measures like this create market uncertainty. "What happens with these types of changing policies that generate uncertainty is that some countries where we operate start reducing inventories because they don’t know what will happen in the future. They become more restrictive with pricing, and indeed, the first to be affected are SMEs, which have fewer resources and are already suffering a significant contraction in both domestic and export markets."

"Any tariff can affect the market in the short and medium term," continued the leader, "and on the other hand, a contraction in demand is expected due to the economic situation the U.S. is facing, reflected in low construction rates."

Meanwhile, Rafael Ide, a board advisor at Corma and foreign trade expert, pointed to a triple dimension: the direct impacts on exports, the indirect effects spreading through global value chains, and the structural consequences threatening the sustainability and competitiveness of the national forestry sector.

Along these lines, Corma President Rodrigo O’Ryan stated, "There are obvious impacts, such as the increased cost of our exports or the loss of market share in certain sectors. But there are also quieter effects that aren’t immediately visible, like stalled projects, reduced investment in innovation, or the weakening of small and medium-sized wood enterprises—which are no less important for being less visible. The concern is that this sustained pressure affects a sector essential for advancing a bioeconomy agenda that Chile and the planet urgently need."

Source:La Discusión