30 July 2025

Brazilian timber sector on alert: Trump’s tariffs threaten jobs

The Brazilian timber sector is facing a severe crisis, primarily triggered by the announcement of high tariffs imposed by US President Donald Trump. This policy has led to a drop in demand for Brazilian wood products, forcing employers to implement collective vacations and mass layoffs. Unions are at the forefront of defending jobs, demanding immediate government action.

Reinaldim Barbosa, President of FETRACONSPAR, paints a grim scenario: "We are in a complicated situation regarding timber." He highlights the difficulty in finalising collective bargaining agreements with real wage increases. In Arapongas, Brazil's largest furniture hub, the collective agreement for May has not yet been finalised, affecting 15,000 workers.

Workers in the sector are already feeling the devastating impact: BrasPine and Braslamber (Jaguariaíva and Telêmaco Borba) have sent a large portion of their teams on vacation, with BrasPine alone sending 1,500 of its 2,500 employees home. Sudati (Telêmaco Borba) has confirmed, in addition to collective vacations, a reduction of approximately one hundred employees from its workforce of 2,800 in Ventania and Telêmaco Borba. Millpar (Guarapuava and Quedas do Iguaçu), whose production is focused on the US, has suspended operations, except for administrative areas, and sent 400 of its 800 employees on vacation. "We are living through a day of chaos," laments Reinaldim Barbosa.

The crisis began with the threat of a 50% surcharge on Brazilian wood exports to the US. Even before the measure takes effect on August 1st, exports have already been halted, creating fears of a sector collapse. Business owners report that many clients have postponed or canceled contracts, as a 50% surcharge would make the Brazilian sector "out of the game" in the American market. This uncertainty has forced companies to reduce production, cut shifts, implement collective vacations, and, regrettably, begin layoffs.

The American market is vital for the Brazilian timber industry, which employs approximately 180,000 direct workers. About 50% of production is destined for the US. Brazil primarily exports timber for civil construction, with 90% of the production capacity concentrated in the South of the country.
Unions affiliated with the Building and Wood Workers' International (BWI) are beginning to mobilize to defend jobs and denounce these anti-democratic, authoritarian, and discriminatory measures orchestrated by Trump with the support of far-right Brazilian politicians who are indifferent to the damage caused to their own country.

The trade union movement proposes a multifaceted approach to the crisis:

Government purchase of domestic timber: The Brazilian government should increase its purchase of national timber to meet domestic demand, particularly for popular housing programs such as "Minha Casa Minha Vida."
New trade agreements: It is urgent that the government further expand trade negotiations with other countries to diversify the consumer markets for Brazilian timber.
Job protection: This initiative aims to safeguard existing jobs and create new opportunities, mitigating the devastating impact of layoffs on families and communities.
Diplomatic efforts: The union movement supports the diplomatic efforts of the government and Brazilian parliamentarians with their American counterparts to find an alternative solution to the surcharge, and expressly condemns those who betray the country for their own political and personal benefit.

The unions' main concern is the post-collective vacation scenario. The current situation highlights the vital importance of social dialogue among employers, workers, and the government. Faced with the threat of US tariffs, the industry must protect the thousands of jobs at risk.