The US Trade Representative has issued a list of products to which a 25% tariffs will be collected. The list covers some 1300 products imported into the US from China valued at about US$50 billion.
Wood products that now attract tariffs include wood products machinery and furniture parts. Analysts in China say inclusion of HS84193250, 84412000, 84413000, 84414000, 84418000, 84419000, 84209920, 84399910, 84399950 and parts of seats (94019015) and parts of seats of cane, osier, bamboo or similar materials (94019025), as well as kiln dried wood (84193210) is of great concern.
According to ITTO, in retaliation China unveiled a list of products imported from the United States for a possible additional tariff of 25% just hours after the United States released its list of Chinese products subject to an additional 25 percent tariff.
Trade of wood products between China and the USA already on a negative trend
According to the data from China’s Customs the value of wood products trade between China and the USA fell 16% to US$1,90 million in March 2018. China’s imports dropped 5% to US$840 million while exports declined 23% to US$1,050 million.
However, the value of wood products trade between China and the USA in the first three months of 2018 rose about 9% to US$6.26 billion, China’s imports increased about 6% to US$2.28 billion while exports value grew 10% to US$3.98 billion.
Log and sawnwood imports
China’s log imports from the USA in the first three months of 2018 totalled 1.41 million cubic metres, a year on year increase of 7% over the same period of 2017.
China’s sawnwood imports from the USA in the first three months of 2018 rose 5% to 709,600 cubic metres.
Exports fibreboard and plywood
China’s fibreboard exports to the USA fell 11% to 71,200 cubic metres and plywood exports to the USA dropped 31% to 360,000 cubic metres in the first three months of 2018.
As exports to the USA decline there has been a rise in exports of panel products to Nigeria, Kenya and the UK.
In the first quarter of 2018 export volumes to these three markets were Nigeria; 78,900 cubic metres, Kenya; 9,800 cubic metres and UK; 6,000 cubic metres.
The direction of trade of China’s plywood exports has also altered with the UK, Thailand and Nigeria becoming more prominent. China’s plywood exports to the UK, Thailand and Nigeria rose 28%, 74% and 270% respectively.