U.S. wood export enterprises in trouble
Since the economic and trade disputes between China and the United States, China has greatly reduced the import of American goods. After China is no longer the largest trading partner of the United States, the status of the United States as a trading partner in China has also declined from the second to the third.
Us timber exports to China fell by 25%.
Trade disputes between China and the United States have led to a sharp decline in timber exports, which has put the U.S. timber industry in a dilemma. At present, the industry will also face a wave of layoffs. China used to account for about half of U.S. hardwood exports, with a total annual export value of about $2 billion. But after Trump’s big trade with China, the figure was cut by about 25%.
According to the U.S. timber export Commission, U.S. timber exports to China decreased by $615 million in the year since the implementation of the tariff policy in July last year compared with the previous year. And in June this year, after the tariff rate came into full force, the trade volume with China has been reduced to half that of a year ago.
“Layoff tide” of American wood industry giant
After losing the huge market of China, American wood export enterprises are in trouble. One of North America’s largest producers, northwest timber’s plant at Mount Vernon, Washington, plans to close in November, cutting 70 jobs. Northwest timber has previously closed a Virginia plant and cut 30 jobs.
China is the company’s number one customer. The CEO of Northwest wood once said that the tariff came as a surprise. Since the middle of last year, total export sales to China have fallen by 43%. Although there is still room for the company to survive, it may shrink due to the economic downturn.
“Line up” in Russia, Central Africa and Southeast Asia
“The U.S. timber industry is facing a watershed,” according to an August report by the international project manager of the U.S. timber export Commission. As the political and business environment between the two countries continues to deteriorate, the timber industry is falling into a struggle with the country with the largest market, and more importantly, it is losing this hard to win market. ”
In the past few years, American timber has gradually been favored by China. But now things are changing, and Chinese consumers are looking for alternative channels. For example, it will buy from Russia, Central Africa and Southeast Asia. Take Russia, the main supplier of Chinese timber, which accounts for about 30% of China’s imports.
According to the statistics of Russia’s export center, in 2018, Russia exported as much as 3.7 billion US dollars of timber to China. After the U.S. timber industry suffered losses due to economic and trade disputes, it could not obtain large subsidies like the U.S. agricultural products. Because the jurisdiction of timber trade belongs to the U.S. Department of Commerce, therefore, the U.S. Department of agriculture has no right to provide other assistance except to remind the Department of Commerce to face up to this problem.
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