US tariffs pressure Brazilian wood exports and regional economies

New United States tariffs are significantly impacting Brazilian exports, particularly within the wood industry. Data shows a decline in several key segments between January and August 2026 compared to the previous year, including a 14% drop in pine plywood exports, a 50% decrease in moldings, and a 24% fall in wooden doors.

The state of Santa Catarina is disproportionately affected, with reports indicating that up to 72% of its exports to the U.S. could be impacted, with the timber sector being the most vulnerable. Other heavily affected sectors include mechanical machinery, electrical equipment, furniture, and vehicles.

In response, technical negotiations have commenced between Brazilian and U.S. representatives. Industry leaders emphasize the urgent need for Brazil to reduce logistical costs, increase productivity, and diversify markets to mitigate the difficulty of replacing U.S. demand.