Raw material exports to China are on track for a fourth straight annual decline, with annualized 2024 volume to China down 59% from its 2018 peak. Hardwood chip volumes are down 9% from the 2018 peak, while hardwood log exports have been flat during that time. Softwood chip volumes plummeted 98% since the 2018 peak and softwood logs fell 72%. The drop in exports is primarily attributable to a slowing Chinese economy and the China-U.S. trade war that started in August 2018. Following two rounds of retaliatory tariffs on U.S. goods, the Chinese government imposed tariffs on the majority of U.S. wood products exports in February 2020. The tariffs are 25% on hardwood and softwood chips and 5% on hardwood and softwood logs. In addition to the tariffs, barriers to trade have been enacted, such as phytosanitary requirements on pine from countries with a pine wood nematode presence. The U.S. is one of seven countries with known nematode presence.