{"id":96818,"date":"2025-09-11T08:28:44","date_gmt":"2025-09-11T08:28:44","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/many-brazilian-lumber-mills-halt-production-sending-employees-on-leave-2\/"},"modified":"2025-09-11T08:28:44","modified_gmt":"2025-09-11T08:28:44","slug":"many-brazilian-lumber-mills-halt-production-sending-employees-on-leave-2","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/many-brazilian-lumber-mills-halt-production-sending-employees-on-leave-2\/","title":{"rendered":"Many Brazilian lumber mills halt production, sending employees on leave"},"content":{"rendered":"<p data-start=\"351\" data-end=\"759\"><!--more-->The Brazilian timber industry is facing a severe crisis following the imposition of new U.S. tariffs on Brazilian products. Since the additional tariffs were announced on July 9, timber companies across the country have been forced to suspend production, cancel contracts, and place employees on collective leave, leaving warehouses filled with products originally intended for export to the United States.<\/p>\n<p data-start=\"761\" data-end=\"1241\">The Brazilian government has introduced a package of measures aimed at supporting affected exporters, but the Brazilian Association of Machined Wood Industries (Abimci) warned that such aid provides only temporary relief and does not offer a fundamental solution to the industry\u2019s problems. According to Abimci, the only effective path forward is through negotiations between the Brazilian and U.S. governments to adjust tariff levels and preserve access to the American market.<\/p>\n<p data-start=\"1243\" data-end=\"1753\">Brazil exported $1.6 billion worth of wood products to the United States in 2024, representing about 50% of the country\u2019s total timber output. Some market segments are almost entirely dependent on U.S. demand, meaning that the tariffs threaten approximately 180,000 direct jobs nationwide. While some state governments have introduced support measures, including tax incentives and expanded credit lines, Abimci stressed that these actions cannot replace urgent federal negotiations with the U.S. government.<\/p>\n<p data-start=\"1755\" data-end=\"2456\">The situation is particularly critical in Mato Grosso, where the timber sector is highly reliant on exports to the United States, which absorbs more than 26% of the state\u2019s native timber production. Products such as solid finished wood flooring are almost exclusively exported to the U.S., leaving producers without viable alternative markets. Municipalities including Ju\u00edna, Colniza, and Aripuan\u00e3 are heavily affected, with up to 80% of local employment linked to the timber industry across more than 180 companies. The sector in Mato Grosso currently encompasses 1,359 establishments employing 10,869 direct workers, primarily in sawmills, furniture manufacturing, and other wood-based industries.<\/p>\n<p data-start=\"2458\" data-end=\"2925\">In response to the crisis, the Federation of Industries of Mato Grosso (FIEMT) and the Center of Timber Producing and Exporting Industries of Mato Grosso (CIPEM) have proposed sending a joint letter from industry representatives and workers to state and federal authorities. The initiative seeks government support and mitigation measures to safeguard jobs, maintain competitiveness, and ensure the continued economic contribution of the timber sector in the state.<\/p>\n<p data-start=\"2927\" data-end=\"3278\">Abimci has repeatedly stressed that without direct negotiations with the U.S., the Brazilian timber industry will continue to struggle. The association warned that production shutdowns, contract cancellations, and collective layoffs are likely to persist, with the looming risk of permanent plant closures affecting hundreds of thousands of workers.<\/p>\n<blockquote data-start=\"3280\" data-end=\"3559\">\n<p data-start=\"3282\" data-end=\"3559\"><em data-start=\"3282\" data-end=\"3535\">\u201cWe have reached a point of no return: Either the government acts with the utmost urgency and conducts technical negotiations, or we will be forced to watch established industrial chains disappear and the communities that depend on them disintegrate,\u201d<\/em> the association said.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":50469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,4715],"tags":[3345,3474,3307,3257],"class_list":["post-96818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-market-analysis","tag-brazil","tag-mills","tag-production","tag-tariffs","topic-forestry","topic-lumber","topic-sawmilling","topic-wood-products","area-global","area-south-america"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - 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