The following updates are courtesy of the Hardwood Federation.
EUDR Extended for One Year: As announced by our colleagues at the American Hardwood Export Council (AHEC) earlier this week, it is being reported by news outlets Reuters and Euroactiv as well as industry contacts that the EU Environment Commissioner is proposing to delay the European Deforestation Regulation implementation for another year. The law was set to go into effect on December 30, 2025, and although at this time there has not yet been an official announcement from the EU, industry sources tell us the delay is considered very likely. In a letter obtained by Euroactiv, EU Environment Commissioner Jessika Roswell recommends a delay to improve the IT system tasked with handing all the data required under the EUDR. The EU’s existing information technology capabilities are currently insufficient to handle the overwhelming number of transactions that would be covered under the regulation.
Although there has not yet been an official announcement from the European Commission about a delay to the law, there is significant momentum for the proposal. The Hardwood Federation will continue to work closely with AHEC and our other forest products partners and continue to update you as the situation develops.
Trade Impacts Assistance: Sources are indicating that a task force is being convened to explore options for assistance to agriculture sectors impacted by sustained low commodity prices and retaliation. In addition, members of the Senate Agriculture Committee have requested a meeting with President Trump to discuss the impacts of trade policy on the “plight of grain farmers in the Midwest.” The Hardwood Federation continues to communicate our strong recommendation to members of the legislative and executive branches of government that exporters of hardwood, in all its forms, must be included in relief measures. We will continue to do so as these efforts develop.
Shutdown Drums Beat Louder: The likelihood of a federal government shutdown beginning October 1 appears increasingly likely. The president and Congressional Democrat leaders were scheduled to meet this week, but that meeting was cancelled. There are just two days next week to forge a compromise and with both sides far apart in positioning, a funding lapse of some duration looks inevitable.
Yesterday, the Office of Management and Budget announced that massive layoffs of federal employees would ensue if Congress fails to enact a Continuing Resolution to fund federal departments and agencies past September 30. It is unclear what impact this action would have on the Department of Agriculture, the U.S. Forest Service, and other federal entities that the federation engages, but we are monitoring developments closely.
It’s Not Too Late! We Need Your Trade and Tariff Experience: The Hardwood Federation’s top priority in 2025 is helping the Trump Administration and members of Congress understand the impacts of current trade and tariff policies on the U.S. hardwood industry. Our goal is to make sure U.S. hardwood and hardwood products are included as key discussion points in ongoing trade negotiations. If negotiated trade deals are insufficient, we are advocating for federal financial assistance to help sustain the industry until markets stabilize.
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