U.S. Trade Investigation Puts Brazilian Lumber Exports at Risk

A new U.S. trade investigation threatens to once again disrupt the Brazilian market—this time targeting the lumber industry. On Saturday, March 1, President Donald Trump signed an order aimed at boosting domestic lumber production, making imports more difficult. Among the measures is a directive for the Department of Commerce to investigate whether imported lumber poses a national security risk.

The investigation will be led by Commerce Secretary Howard Lutnick and is based on Section 232 of the Trade Expansion Act of 1962. This is the same legal measure Trump previously used to justify global tariffs on imported steel and aluminum, which significantly impacted Brazilian exports.

In addition to launching the investigation, Trump signed an executive order to increase the number of potential suppliers of lumber and sawn wood while working to lower housing and construction costs. The initiative seeks to expedite permitting processes and expand the supply of wood products for sale, according to a senior White House official, who spoke on condition of anonymity.

The U.S. government, in an official statement, emphasized its demand for new agency guidelines aimed at expanding domestic timber production. This includes accelerating approvals for forest projects under the Endangered Species Act. The unnamed official also noted that the order would help prevent wildfires and improve wildlife habitats.

Before the order was signed, White House trade advisor Peter Navarro told reporters via teleconference that the investigation was a direct response to major lumber-exporting nations such as Canada, Germany, and Brazil.

“These countries are dumping lumber into our markets at the expense of our economic prosperity and national security,” Navarro said.

The tariff threat extends beyond raw lumber, potentially affecting all products made from sawn wood, including furniture and kitchen cabinets. There is no official timeline for concluding the investigation, but a White House official indicated that the Commerce Department would expedite the process.

Although the administration has yet to confirm the exact tariff rate, President Trump suggested last month that he was considering a 25% tariff on sawn lumber and forestry products.

See below for the top ten most exported wood-derived products from Brazil to the United States in 2024, according to data derived from DataLiner.

Wood Exports to the U.S | Jan 2021 – Jan 2025 | TEUs

Source: DataLiner (click here to request a demo)

The anonymous official added that the U.S. government views its reliance on imported lumber as a national security risk, noting that the construction sector—heavily used by the U.S. military—relies extensively on the product. He also stressed that a greater dependence on imported commodities that are abundantly available domestically poses an economic threat.

If implemented, the lumber tariff would add to the growing list of U.S. trade barriers affecting Brazilian exports. On February 10, President Trump imposed a 25% tariff on imported steel and aluminum, a move that sparked concern among Brazilian officials and industry leaders. The Brazilian government is currently pursuing diplomatic negotiations in hopes of securing an exemption.

Source: Correio Braziliense

Sharing is caring!