Brazil’s Timber Sector Faces Pending US Tariffs

The Brazilian Association of Mechanically Processed Timber Industry (Abimci) has voiced concern over the US decision to impose a 50% tariff on Brazilian timber products, the International Tropical Timber Organization reported.

Brazilian wood product exports to the US totaled roughly $1.6 billion in 2024, which accounts for about 50% of Brazil’s national timber output.

Abimci said the sector is already experiencing contract cancellations, shipment suspensions, and partial or full shutdowns of production facilities. Roughly 1,400 containers are currently en route to the US, while another 1,100 are stuck at Brazilian ports awaiting shipment.

Some companies have resorted to mandatory worker leave in an effort to preserve jobs, while others are preparing for layoffs. Production is being scaled back across nearly the entire sector, with some operations halted entirely.

Abimci has called on the Brazilian government to take action to mitigate the effects of the tariffs.