US Tariffs Already Impacting Brazilian Wood Products Industry

The new 50% US tariff on products from Brazil is already leading to canceled orders and threatening exports from the country’s forest sector, according to the International Tropical Timber Organization (ITTO). Companies in the South, Southeast, and Amazon regions, including those using timber sourced from natural forests, are facing operational shutdowns and growing uncertainty.

The US is a critical market, particularly for manufacturers of flooring, panels, and mouldings that are often custom designed for the US construction industry. Industry leaders say maintaining exports is not feasible under the tariff, which cannot be absorbed, the ITTO reported.

The National Forum of Forest-Based Activities (FNBF) and the Brazilian Association of Mechanically Processed Timber Industry (Abimci) warned that no alternative markets can absorb current export volumes. They urged the Brazilian government to take immediate action, including diplomatic negotiations with the US to delay implementation of the tariff and establish commercial terms similar to those granted to competitors such as Vietnam, Indonesia, and Chile.