The Global Timber Index (GTI) report for December 2025 indicates the global timber sector remains in contraction territory. Among the ten GTI pilot countries, only Ghana (56.6%) maintained an index above the 50% threshold, while all others were below the threshold. Specifically, China (49.9%), the Republic of the Congo (48.0%), Mexico (48.0%), and Brazil (47.9%) recorded readings near the threshold, reflecting relatively mild contraction. Thailand (46.8%), Indonesia (46.3%), and Ecuador (46.3%) posted similar levels, reflecting moderate contraction. Gabon (34.6%) and Malaysia (29.5%) recorded low readings, indicating a significant downturn in their timber sectors.

GTI sub-indices revealed export market performance as a notable bright spot this month. Both Gabon and Thailand saw their export markets shift from contraction to significant expansion; Brazil’s export orders grew for the third consecutive month; and export markets of Indonesia, the Republic of the Congo, and Mexico held steady. Also, the sub-indices showed that Ghana's harvesting volume grew for several consecutive months, while production volume increased in both Ghana and China, and new orders posted month-on-month growth in Indonesia, Mexico, and China.

GTI pilot countries are actively pursuing export market diversification. On December 21, The Indonesian government signed a free trade agreement with the Eurasian Economic Union, which is expected to further boost exports of Indonesian products such as furniture to non-traditional markets. The Malaysia External Trade Development Corp (Matrade) had partnered with a U.S. home goods e-commerce platform, to help local businesses expand online sales to the United States. Meanwhile, Brazil’s timber industry is actively exploring markets such as China and the European Union to counter export pressures stemming from U.S. tariff increases. 

The international operating environment for the timber and furniture industries remains complex and volatile. This month, notable adjustments were made to tariff and trade policies in several GTI pilot countries. For example, on December 18, China's Hainan Free Trade Port officially launched island-wide special customs operations. Following the implementation, the range of goods exempt from import tariffs had expanded from 1,900 tariff lines to approximately 6,600, covering 74% of all tariff lines and nearly all timber raw materials. In other news, Mexico passed amendments to the Law of General Import and Export Taxes on December 29, adjusting 1,463 tariff items across 17 strategic industries and imposing higher import duties on specific products from countries that do not have a free trade agreement with Mexico. Among the amendments, furniture industry’s original tariffs of 0%-35% were revised to a new range of 25%-35%.

GTI Report - December 2025.pdf