American tariff u-turn boosts Swedish exports

The forest industries have received welcome news. The previous 15 percent tariffs on imports of European pulp to the US have been scrapped.

Pulp is now completely exempt from US import tariffs, regardless of country of origin. The EU also does not impose any import tariffs on American pulp.

“It’s good news that trade in pulp can now take place on equal terms. The decision also shows that pulp is an important product for the US, which they see a continued strong need to import going forward. Predictability is what the industry needs now,” says Charlotte Dickens, market analyst for pulp and paper at the Swedish Forest Industries Federation.

The decision will have a major impact on Swedish forest industry, as the US accounts for five to ten percent of total exports. Pulp represents approximately one-third of this.

“Has been disrupted”

Before the ongoing trade conflict, pulp, paper and board were traded tariff-free across the Atlantic for decades.

“The US has been a stable and growing market for Swedish manufacturers and that picture has been disrupted. But above all, the abrupt shifts in American trade policy have affected us indirectly, by creating uncertainty, driving speculation and beginning to change global trade flows,” says Charlotte Dickens.

However, not everything is smooth sailing. Pulp shipped to the US on September 8 and later is tariff-free. But for paper and board, 15 percent import tariffs remain in place.