As tariff dispute drags on, Brazilian wood exports to U.S. plunge 55%

Brazilian exports of wood products to the United States fell by an average of 55% in the first three months after Washington imposed a 50% tariff, according to estimates by Abimci (the Brazilian Association of Mechanically Processed Wood Industry), based on Secex/Mdic data released on November 6.

The decline affects the sector’s main segments — moldings, plywood, doors, flooring, and sawn wood — and threatens the survival of companies dependent on the U.S. market.

According to Abimci, since the tariff announcement in July, the sector has recorded four consecutive months of contraction.

Without access to the U.S. market, many companies have scaled back production, while others have halted operations entirely. Thousands of workers are on a collective vacation or a layoff, and layoffs have already occurred.

See below a history of Brazilian wood exports to the United States via containers. The chart was prepared with DataLiner data:

Brazilian Wood Exports to the United States | Jan 2022 to Sep 2025 | TEU

Source: DataLiner (Click here to request a demo)

Bilateral negotiations

Abimci superintendent Paulo Pupo said the only way forward lies in bilateral negotiations.

“The only solution depends on effective progress in negotiations between the governments of Brazil and the United States so that tariffs can be adjusted and trade between the two countries normalized. However, what we’ve seen is a lack of practical action and effective agendas in these much-needed talks,” he said.

Pupo also warned of the risk of Brazilian products being replaced in the U.S. market. In his view, the longer the negotiations stall, the greater the risk of gradual substitution.

“Clients and importers are naturally starting to look for suppliers in countries with lower tariffs, and Brazil is highly exposed to this trend, as it currently faces the highest nominal rate in the world,” he noted.

Negotiations

The trade dispute remains the subject of diplomatic dialogue. Brazilian Foreign Minister Mauro Vieira discussed the 50% tariff with U.S. Secretary of State Marco Rubio on Wednesday (12) in Canada.

According to Brazil’s Foreign Ministry (Itamaraty), the country submitted a formal negotiation proposal on November 4, and a new meeting has been scheduled to further discuss the issue.

Minister Vieira cited the recent conversation between Presidents Luiz Inácio Lula da Silva and Donald Trump in Malaysia as an example of ongoing efforts to ease trade tensions between the two nations.

Source: R7

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