Moody’s lowers outlook for forest products sector due to rising tariffs and slowing demand

Moody’s downgraded its outlook for the global forest products sector from stable to negative, citing rising tariffs and weakening demand as key challenges. The July 2025 update forecasts pressure on profitability and growth in the paper, packaging, and wood products industries over the next 12 to 18 months. Tariffs imposed by major markets have disrupted trade flows, increased costs, and complicated supply chains. Higher tariffs on wood products and pulp have raised raw material and finished goods prices, squeezing margins and forcing companies to reconsider sourcing and production strategies. Export-dependent producers are particularly affected. Moody’s ...