How US trade policy affects Brazil’s wood supply chain, what changed between 2025 and 2026, and what your sawmill can do to respond strategically.
Updated October 2026. This situation changes quickly: check your product’s tariff classification (HS/HTS) before making decisions.
1. Introduction: why US tariffs demand attention
The United States is one of the main markets for Brazilian pine lumber, moldings, plywood and wood panels. Since mid-2025, a series of US trade measures has raised the cost of getting these products into that market. For sawmills, exporters, panel makers and the whole forestry chain, understanding US tariffs on Brazilian wood is no longer just a foreign trade issue; it is now part of production planning.
⚠ Important: the measures have changed several times since 2025, and talks between the two governments are ongoing. Follow announcements from USTR and industry associations.
2. Timeline: what changed from 2025 to 2026
| Date | Measure | What it meant for wood |
|---|---|---|
| August 2025 | Total tariff of 50% on Brazilian goods, under the International Emergency Economic Powers Act (IEEPA) | Lumber, moldings, panels and plywood became much more expensive in the US. Pulp was later excluded in September 2025. |
| October 14, 2025 | Global Section 232 tariffs on wood: 10% on softwood lumber and timber, 25% on upholstered furniture and kitchen cabinets | These apply to all countries, not just Brazil. Products covered by Section 232 were left out of the later Section 301 tariff. |
| February 2026 | The US Supreme Court struck down the IEEPA tariffs; the government applied a temporary 10% global tariff (Section 122) | End of the 50% tariff. The temporary tariff ran until July 24, 2026. |
| July 22, 2026 | Additional 25% tariff on Brazilian goods following a Section 301 investigation | Hits panels (MDF, particleboard), laminate flooring, pine moldings, paper and dissolving pulp. Chemical pulp (hardwood and softwood) and some wood products are on the exclusion list. |
| July 23, 2026 | Announcement of an extra tariff of up to 12.5% on some products, in a forced-labor investigation | For affected items, the total surcharge can reach 37.5%. |
Sources: USTR via Greenberg Traurig (Jul. 2026); NewsPulPaper with Ibá data (Jul. 2026); Forbes Agro (Jul. 2026); Correio da Manhã (Jul. 2026); Thomson Reuters (Oct. 2025).
2.1 Which forest products are subject to the 25% tariff?
The Section 301 exclusion list is defined by product code and does not cover all of HS Chapter 44 (wood), so each item needs to be checked. Broadly:
- Affected: wood panels (MDF and particleboard), laminate flooring, pine moldings, stakes, paper and dissolving pulp.
- Outside the 25% tariff: hardwood and softwood chemical pulp, some tropical wood codes (logs and sawn), certain plywood, veneers and tropical hardwood flooring, plus products already covered by Section 232.
According to Ibá, the Brazilian Tree Industry association, about 83% of the wood sector’s exports to the US are hit by the new tariff, compared with about 24% in pulp and paper.
In practice, a product that reached the US market at US$400 per tonne now costs US$500 with the 25% tariff, or US$550 if the 12.5% surcharge also applies, before freight and importer margins.
2.2 How does this affect Brazilian sawmills?
Sawmills that export to the US, or supply exporters, now face:
- Suspended contracts and renegotiated terms with US buyers
- Lower demand for higher-value products such as moldings
- Growing inventories and the risk of quality loss in stored wood
- Price pressure in the domestic market, as volume is redirected and margins shrink
- More uncertainty around investment in expanding or modernizing production lines
Small and mid-sized sawmills are especially vulnerable, with less access to currency hedging, a narrower customer base and less bargaining power in international contracts.
3. The context: why did the US impose these tariffs?
The official justifications have changed over time:
- In 2025, the executive order that created the 50% tariff cited actions by the Brazilian government that, according to Washington, harmed US interests and companies, amid a diplomatic dispute that also involved the prosecution of former president Jair Bolsonaro. The Brazilian government rejected the accusations.
- In 2026, USTR’s Section 301 investigation pointed to Brazilian practices in digital trade, electronic payments, intellectual property, anti-corruption enforcement, ethanol market access and deforestation. USTR says the tariffs will remain until those issues are resolved.
- The Section 232 wood tariffs follow a different logic: they are global, and the US justified them on national security grounds and to protect its domestic lumber industry.
This suggests the impact of the tariffs could last unless the two countries reach a negotiated solution.
4. The impact of the tariffs in numbers
First-half 2026 data, even before the 25% tariff, already showed Brazilian wood losing ground in the US:
| Product (exports to the US) | Change H1 2026 vs. H1 2025 | Source |
|---|---|---|
| Wood panels | -50.3% (tonnes) | Ibá |
| Paper | -48.5% (tonnes) | Ibá |
| Sawn wood | -36.6% (tonnes) | Ibá |
| Plywood | -25.3% (tonnes) | Ibá |
| Sawn pine | -37% in volume and -41% in value | STCP |
Across all destinations, exports of the ten main wood products tracked by WoodFlow totaled US$855.2 million in the first half of 2026, down 8% in value from the same period of 2025. To the US, the drop was 33%. Brazil’s National Confederation of Industry (CNI) estimates that the 25% tariff covers about 4,000 Brazilian products worth US$11.9 billion in exports.
5. How to mitigate the impact of the tariffs
5.1 Diversify international markets
Finding new trading partners is essential:
- China and Southeast Asia for pulp, panels and treated wood
- European Union, focusing on certified, traceable products in line with the EU Deforestation Regulation (EUDR)
- Middle East and North Africa, which buy plywood and construction lumber
- Latin America, to supply the construction and furniture sectors
This strategy reduces dependence on the US and broadens companies’ revenue base.
5.2 Invest in technology: Marrari’s solutions for sawmills
Production efficiency and less waste
With thinner margins, every cubic meter recovered counts. Marrari Automação offers technologies that optimize sawmill production, including:
- Precise moisture control with the M51, M52 and M55-56 meters
- Kiln automation for even, safe drying
- Pro X production control, with yield, downtime and OEE in real time
Traceability and phytosanitary control
- Real-time records that help prove where wood came from and how it was processed
- Support for FSC and PEFC certification processes
- Phytosanitary control (heat treatment) to reduce the risk of sanitary barriers
Added value and access to demanding markets
- Greater product reliability abroad
- Meeting the requirements of European, Asian and sustainability-focused buyers
Technology helps your sawmill’s output meet international standards, adding value and competitiveness even in tough conditions.
5.3 Institutional and diplomatic action
- Support industry associations in talks with the US government
- Follow product exclusion requests and negotiations between the two governments
- Take part in trade fairs and business rounds with buyers from other countries
5.4 New products and segments
- Engineered wood (CLT, glulam)
- Components for high-end furniture and architecture
- Sustainable packaging
- Renewable energy (certified pellets for Europe)
6. Conclusion: facing the tariffs with strategy and innovation
The impact of US tariffs on Brazilian wood is real, but it does not have to be a sentence for your company. With planning, diversification and technological innovation, it is possible to get through this period of instability.
Sawmills that adopt technology for production efficiency, traceability and phytosanitary control will be better placed to win new markets, improve margins and reduce risk.
Marrari positions itself as a strategic partner for this new cycle, with robust solutions, qualified technical support and experience in dozens of timber hubs across Brazil and Latin America.
Now is the time to act. The impact of the tariffs can be met with knowledge, technology and collaboration between industry and its associations.
References
- Greenberg Traurig. USTR announces Section 301 tariffs on Brazil: new 25% duties to take effect July 22, Jul. 2026. gtlaw.com
- NewsPulPaper. Setor florestal será impactado por novo tarifaço de 25% (in Portuguese), Jul. 2026. newspulpaper.com
- Forbes Agro. Madeira brasileira perde espaço nos EUA e amplia incertezas para exportadores (in Portuguese), Jul. 2026. forbes.com.br
- Correio da Manhã. EUA confirma nova tarifa de 12,5% ao Brasil por “trabalho forçado” (in Portuguese), Jul. 2026. correiodamanha.com.br
- Thomson Reuters. New Section 232 tariffs on imports of timber and lumber, Oct. 2025. thomsonreuters.com
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