Hello,
Two big things happened this week.
On Thursday, the US Supreme Court struck down the White House's IEEPA-based tariffs. The administration responded by invoking Section 122, imposing a temporary 15% import duty starting February 24 (today). It lasts a maximum of 150 days.
The same week, Eurostat reported EU construction grew in December. Up 0.9% in the euro area. Up 1.2% across the EU. That's the first positive signal in months.
One event reshuffles global timber trade. The other hints at European demand recovery. Together, they create a new landscape.
Here's what's moving European forestry this week:
🔍 The Big Story
Tariffs Fall, Construction Rises — What European Timber Markets Face Next
The US Supreme Court ruled against the 2025 "reciprocal tariffs" based on the International Emergency Economic Powers Act (IEEPA) on February 20. Trade advisors report that tariff collections under the old mechanism stopped immediately after the ruling.
The White House responded within hours. Using Section 122 of the Trade Act, the administration imposed a temporary import duty of 15%. Section 122 allows tariffs up to 15% for a maximum of 150 days. The new duty takes effect February 24 (today).
Why European foresters should care
US softwood lumber imports fell 9% in 2025. That's the fourth straight annual decline. Canada still holds 82% of US import volume, shipping 24.62 million m³ — down 12% from the year before.
When US tariffs change, lumber flows shift. North American producers look for new markets. Some of that wood competes with European products. Some of it leaves gaps European exporters can fill.
The tariff chaos adds uncertainty. Nobody knows what happens after 150 days.
The construction signal matters more
Closer to home, the news is better. EU construction production rose in December 2025. Eurostat confirmed a seasonally adjusted increase of 0.9% in the euro area and 1.2% across the full EU, compared with November 2025.
One month doesn't make a trend. But this is the first uptick after a long decline. Construction drives about 60% of European sawn timber demand. Any recovery here moves wood markets.
German logs hit fresh records
Timber-Online reported on February 17 that German softwood log prices reached new record highs. Prices are "rising almost unstoppably in the northern half of Germany." The pressure is pulling southern prices up too.
We covered rising German log prices in EFP #62. They're still climbing. Forest owners selling spruce in Germany are in one of Europe's strongest positions right now.
What this means for you
If you sell timber in Europe: Watch both signals. Construction recovery creates demand. But tariff chaos could redirect North American wood toward your markets. Stay alert to shifts in trade flows.
If you own forests in Germany: Your negotiating power keeps growing. Prices haven't peaked yet. But don't assume they'll rise forever.
If you buy wood: Input costs won't ease soon. German records, Alpine strength, and tariff disruptions all point toward continued pressure on processor margins. Sources: Alliance CHB — Supreme Court Tariff Analysis | White House Fact Sheet — Section 122 Duty | Eurostat — Construction Production, December 2025 | Timber-Online — New Price Peaks for Softwood Logs | Lesprom — US Softwood Lumber Imports Fall 9%
📊 Quick Hits
1. 🇨🇦 Canfor's C$321 Million Write-Down Blames European Wood Costs
Canada's Canfor will record a non-cash write-down of approximately C$321 million in Q4 2025. The lumber segment accounts for C$215 million. Pulp and paper make up the remaining C$106 million.
The European link: Canfor specifically cited significant increases in log costs for its European lumber operations. European log availability pressures drove much of the lumber segment hit.
The pattern continues: In EFP #62, we covered Södra, West Fraser, and Interfor posting massive losses. Canfor's write-down adds another name. The processor bloodbath keeps spreading.
The takeaway: If you supply logs in Europe, your product is scarce. Buyers across the world feel it. That's market power. Use it wisely. Source: Lesprom — Canfor Write-Down | MarketWatch — Canfor C$321M Charge
2. 🌲 PEFC Launches First Circular Economy Pilot for Wood
PEFC announced pilot projects on February 18. They will test draft requirements for circular materials within Chain of Custody certification. The scope covers recycled fibres, re-assembled, repaired, and reused forest-based materials.
What's new: This makes PEFC one of the first major forest certification bodies to tackle circular economy in wood products explicitly. The pilot is global. Companies and certification bodies can apply to participate.
Get involved: PEFC established a Circular Materials Task Force. Check the PEFC announcement for application details and deadlines.
The takeaway: Circular economy is coming to forest certification. If your business touches recycled or reused wood, this pilot shapes the rules you'll follow. Source: PEFC — Circular Material Requirements Pilot
3. 📋 EU Plans to Change EUDR Product List — Without Reopening the Law
Euractiv reports that the European Commission plans to adjust which products fall under the deforestation regulation. The method: delegated acts. The core legislative text stays closed.
Why it matters: This is how "simplification" works in practice. The Commission can add or remove product categories without opening the full legislative debate again. Changes through delegated acts move faster than normal legislation — and with less public debate.
What to watch: Which products get added or removed. Euractiv's reporting is based on a single source and these are Commission plans, not enacted law yet. The December 30, 2026 deadline for large and medium operators remains unchanged.
The takeaway: If your products sit near the EUDR boundary, stay informed. The list may shift. The deadline doesn't. Source: Euractiv — EU to Tweak EUDR Product List
4. 🇸🇪 Sveaskog Posts Strong 2025 Results — Forest Owners Win Again
Early reports indicate Sweden's state forest company had a strong 2025. According to secondary sources, operating profit rose approximately 10%. Net profit reached roughly SEK 10.9 billion. Revenue came in at about SEK 8.7 billion.
The dividend: Sveaskog proposes approximately SEK 1.3 billion. The Swedish state, as sole owner, benefits directly.
The pattern: Sveaskog joins Tornator, Rayonier, and German private forest owners on the winners' list. We've tracked this divergence since EFP #60. Processors lose. Forest owners gain.
The takeaway: Owning forests in Northern Europe continues to deliver strong returns. The value sits in the land and the ecosystem, not in the mill for now.
Note: These figures are based on early reports. Confirm against Sveaskog's official 2025 annual report for exact numbers. Source: Global Wood News / Sveaskog official reports 2026
5. 🤝 ForestryBrief Now Offers Communication and Intelligence Services
ForestryBrief is expanding beyond the newsletter. We now offer hands-on services for forestry organisations across Europe.
Why this matters: The European forestry sector has a communication problem. We've written about it in Fordaq. We've spoken about it at conferences. Now we're offering direct help.
What's available:
Forestry content and thought leadership
Stakeholder communication in three languages (EN/DE/HU)
Regulatory compliance intelligence
Timber and carbon market analysis
Forest investment due diligence
Communication workshops and training
Coming soon: The Forestry Communication Playbook — a guide with dozens of templates and tools for building your organisation's communication strategy from scratch.
Details: forestrybrief.com/services
📅 The Weeks Ahead
February 24–27, 2026: DACH+HOLZ International — Cologne, Germany (wood construction)
February 25, 2026: PEFC Trees outside Forests webinar — agroforestry and urban forestry certification (10:00 and 15:00 CET)
February 25–27, 2026: Forum Bois Construction — France
March 3, 2026: ATIBT Selva Maya webinar — connecting FSC/EUDR-aligned tropical timber with EU buyers
March 17–19, 2026: Wood Tech Expo — Warsaw, Poland
March 27, 2026: State of Europe's Forests 2025 (SoEF) launch — FOREST EUROPE webinar 10:00–12:00 CET
December 30, 2026: EUDR deadline for large and medium operators
💡 One Thing to Try This Week
Read the EUDR Cheat Sheet.
The deforestation regulation deadline is ten months away. Many operators still don't know what's required.
ForestryBrief updated the free EUDR Cheat Sheet. It covers:
Who must comply and by when
What products are affected
The due diligence steps, explained simply
Key dates and deadlines
Where to find help
Fifteen minutes. Might save you thousands.
🤝 ForestryBrief Services
European forestry needs better communication and smarter capital. We deliver both.
Communication: Content strategy, trade publication articles, stakeholder messaging, staff training. Three languages: EN | DE | HU.
Intelligence: EUDR compliance, timber market analysis, carbon market monitoring, forest investment due diligence.
The Forestry Communication Playbook: A complete guide to building your organisation's communication strategy. Coming soon.
Until Thursday!
Wish you all the best: Peter
🤝 Need help with forestry communication, intelligence, or due diligence? See what we offer → ForestryBrief Services
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