On November 20, the European Commission announced its definitive anti-dumping duties on hardwood plywood originating from China, setting rates at 43.3% for one specific producer and 86.8% for all other Chinese manufacturers. The measures took effect on November 21.
The Commission determined that Chinese exporters were engaged in significant below-cost sales in the European market, a practice allegedly fueled by industrial overcapacity and non-market subsidies. For the vast majority of Chinese plywood exporters, the 86.8% duty effectively blocks access to the European market.
In response to the tariffs, some Chinese exporters have attempted technical circumvention by adding a thin surface layer of softwood veneer to hardwood plywood products. This allows the goods to be classified under customs codes for softwood plywood, which face lower tariffs. The European Commission has acknowledged these practices and indicated it will strengthen customs monitoring to prevent such "cosmetic alterations" aimed at duty evasion, with offenders facing potential retroactive penalties.
Over the past three years, traditional wood processing industries in Europe have struggled to compete with low-priced imports, leading to production cuts and factory closures in several member states. The new tariffs are expected to restore price levels that allow European manufacturers to regain lost market share. However, downstream industries in Europe-such as furniture makers and construction firms-that rely on affordable imported materials are likely to face sharp cost increases. At a time when inflation remains a concern, rising raw material prices could squeeze profit margins in key sectors like construction in the near term.
