Dependence on the U.S. Comes at a High Price: Tariff Threatens R$ 1 Billion in Losses in Northern Plateau and Puts 800 Jobs at Risk by Hitting the Timber Sector

Written by Romário Pereira de Carvalho

Published on 02/09/2025 at 10:38

Updated on 02/09/2025 at 10:54

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With 50% Tariffs from the U.S., Timber and Furniture Exports from the Northern Plateau Drop, Jobs Are at Risk, and American Dependence Becomes Evident

A recent diagnosis by the Federation of Business Associations of Santa Catarina (Facisc) revealed significant numbers regarding the weight of the external market for the Northern Plateau. In 2024, the exports from the region reached R$ 4.8 billion, representing 6.5% of the state total. In total, 191 companies participated in international sales.

The region ranks sixth among the largest exporters in Santa Catarina. Canoinhas, Mafra, and Porto União lead operations, with absolute prominence in the timber and furniture sectors, which account for over 36% of exports.

When the destination is the United States, the Northern Plateau consolidates itself as the third largest exporting region in the state.

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Strong Concentration in the Timber Sector

In 2024, exports from the region to the United States totaled R$ 1.076 billion. The bulk of this value came from timber and furniture, which account for 95% of the total.

The furniture sector is the most relevant, with over 40% share, followed by processed timber (25.2%) and plywood (17.9%). This concentration reinforces the Northern Plateau’s dependence on the American market.

Therefore, the situation is clear: 99% of processed timber goes to the U.S. Moreover, 60% of furniture and 44% of plywood also have the same destination. Despite diversification efforts, the American market remains dominant.

Effects of the Recession in the U.S.

The sector’s vulnerability had already surfaced in 2022 and 2023, when the American recession directly impacted exports.

Construction in the United States declined by 5% in 2022 and 2% in 2023. This movement caused the exports of timber and furniture from the Northern Plateau to fall beyond the state average.

Losses totaled over R$ 1 billion. The timber sector was the hardest hit, with a contraction exceeding 50% in external sales.

Now, in 2025, the recovery that was underway faces a new obstacle: the tariff imposed by the Trump administration.

Projection of Losses and Jobs at Risk

If the tariffs result in losses equivalent to double those of 2023, industries could suffer over R$ 1 billion in production reduction. Additionally, nearly 800 jobs in the Northern Plateau’s timber industry are at risk.

Cities such as Canoinhas, Três Barras, Porto União, and Papanduva host the main industries, such as Procopiak, Energia Madeiras, Brasnile, and FComp.

International competition exacerbates the scenario. Countries such as Vietnam, the Philippines, and China already enjoy more favorable diplomatic relations with the U.S.

Impact of the Tariffs: Unemployment Increases in the Region

The impact of the tariffs is already evident in the official numbers. The timber and furniture sector closed 581 positions in July, according to data from Caged compiled by the Fiesc Observatory. It was the first clear record of the effects of the 50% tariffs imposed by the United States.

“The closure of jobs in the sector reflects the imposition of tariffs and shows the direct impact on exporting industries,” stated the president of Fiesc, Gilberto Seleme. In the same month of 2024, the sector had created 127 formal jobs.

Despite the negative balance for timber and furniture, the overall situation of the industrial sector in Santa Catarina in July was positive. The sector created a thousand job openings, and the state economy recorded a net gain of 2.8 thousand jobs during that period.

In the cumulative total for 2025, Santa Catarina has already created 83 thousand jobs, with 43 thousand just in industry. Nevertheless, this number is 8.6 thousand lower than the previous year.

Fiesc Launches Support Package

In light of the situation, Fiesc launched the desTarifaço program. The initiative offers free support to affected companies and workers.

The package includes consulting for new products and markets, support for obtaining credit, public incentives, and even psychological counseling.

“The impact of the tariff is not uniform. Some small and medium industries have over 90% of their revenue compromised. We need to provide immediate support to these companies and their workers,” highlighted Seleme, who is from Caçador and familiar with the reality of the Northern Plateau.

The Fiesc study shows that smaller towns in the Northern Plateau, Midwest, and Serra suffer proportionately more.

“We also work to preserve the workforce in these regions, preventing more serious social problems,” added Seleme.

Planned Measures

Among the actions aimed at the industry are: support for seeking credit, consulting for new markets, adaptation of products and lines, assistance from specialized scholars, and legal advice for union negotiations.

For workers, the package offers training during inactivity, retraining for laid-off workers for sectors with available positions, and psychological counseling.

Business Mission in Washington to Address the Tariffs

This week, Fiesc participates in a mission organized by the National Confederation of Industry (CNI) in Washington.

On the 3rd and 4th, representatives will meet with law firms, hold meetings at the Brazilian Embassy, and engage in dialogues with American authorities.

The mission aims to create opportunities for negotiations and minimize the damage from the tariff issue, which is already profoundly affecting the Northern Plateau.

The historical dependence on the U.S. market, therefore, places the region in a delicate position in light of the trade barriers imposed.

With information from JMais.com.

Dependence on the U.S. Comes at a High Price: Tariff Threatens R$ 1 Billion in Losses in Northern Plateau and Puts 800 Jobs at Risk by Hitting the Timber Sector

With 50% Tariffs from the U.S., Timber and Furniture Exports from the Northern Plateau Drop, Jobs Are at Risk, and American Dependence Becomes Evident

Strong Concentration in the Timber Sector

Effects of the Recession in the U.S.

Projection of Losses and Jobs at Risk

Impact of the Tariffs: Unemployment Increases in the Region

Fiesc Launches Support Package

Planned Measures

Business Mission in Washington to Address the Tariffs

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Dependence on the U.S. Comes at a High Price: Tariff Threatens R$ 1 Billion in Losses in Northern Plateau and Puts 800 Jobs at Risk by Hitting the Timber Sector

With 50% Tariffs from the U.S., Timber and Furniture Exports from the Northern Plateau Drop, Jobs Are at Risk, and American Dependence Becomes Evident

Strong Concentration in the Timber Sector

Effects of the Recession in the U.S.

Projection of Losses and Jobs at Risk

Impact of the Tariffs: Unemployment Increases in the Region

Fiesc Launches Support Package

Planned Measures

Business Mission in Washington to Address the Tariffs

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Austria inaugurates Europe’s first high-speed railway outside China — trains travel at 250 km/h through 33 km tunnels in the Alps that took 27 years to drill

An unmanned Russian ship has been drifting in the Mediterranean for 57 days with 60,000 tons of gas — the second towing attempt has just failed.

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