Nearly 2mn t of US wood pellets may be subject to the EU's potential retaliatory import tariffs, judging by imports in 2024.
Wood pellets — under the HS code 44013100 — was one of the two products under chapter 44 of the HS classification included in the list of US products that would be subject to tariffs according to the European Commission's consultation launched on 8 May. Wood charcoal, under HS chapter 44, will also be affected. The EU imported 1.9mn t of wood pellets from the US in the whole of 2024, accounting for 88pc of deliveries under HS chapter 44, customs data show.
It is "no surprise" to see wood pellets on the list, as the absolute value of those imports is significant relative to other products, a market source told Argus. Wood pellets made up €401mn of the €892mn of the imports value under the HS code 44013100 in 2024, customs data show.
Other mentions of wood were present in the EU's updated tariff countermeasure list: five products under the pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard category from HS chapter 47; and 23 under the paper and paperboard; articles of paper pulp, of paper or of paperboard category from HS chapter 48.
US products under HS chapter 47 subject to potential tariffs accounted for 77pc of volume and 85pc of the value of all imports under this chapter in 2024. While goods under HS chapter 48 accounted for only a third of the quantity and value of the total.
The EU's consultation on the countermeasures will remain open until 10 June.
The EU paused a series of countermeasures against US tariffs on EU steel and aluminium imports for 90 days with effect on 15 April to allow space for negotiations. The US government for now levies a 10pc import tariff on EU goods, having paused EU-specific 20pc tariffs for 90 days on 9 April, but the US does not import any pellets from the EU and therefore these have had no impact on the pellets market.
Most of the US wood pellets shipped to the EU are subject to long-term offtake contracts, and the burden to pay for additional costs should tariffs become effective would depend on contractual terms. Tariffs on US wood pellets — if implemented — may also discourage spot transactions for the origin while supporting European or other origin pellet deliveries to the EU.
