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Millpar Announces Closure of Plant in Quedas do Iguaçu and Layoffs in Guarapuava After 50% Tariff Imposed by Donald Trump on Brazilian Exports
The Millpar industry, a producer of wood-based items, announced on Tuesday (19) that it will close its plant located in Quedas do Iguaçu, Paraná. The decision was accompanied by mass layoffs at the Guarapuava unit, considered the company’s main operation in the state.
The announcement was initially made to employees and then forwarded to the press. The company attributed the measures to the direct impact of the 50% tariff imposed by President Donald Trump on Brazilian products exported to the United States.
Layoffs and Unit Closure
According to information from Millpar itself, the total number of employees in the two cities was approximately 1,100 people. However, the company’s advisory preferred not to specify the number of layoffs.
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The official statement emphasizes that the U.S. market is the main destination for the company’s exports. The new tariff reduced the competitiveness of wood products, creating insecurity throughout the supply chain.
As a result, there were sales stoppages and suspension of activities in Quedas do Iguaçu.
Collective Vacation and Adverse Scenario
Even before the definitive measure, Millpar had already been taking emergency actions. Shortly after the announcement of the tariff, 640 employees were placed on collective vacation. Soon after, another 80 workers were also laid off.
With the inception of the tariff, the company opted to suspend production. However, the persistence of this adverse scenario forced management to make cuts and close operations at one of its units.
Official Statements
In the statement, the company informed that it granted, in addition to legal rights, additional benefits to those laid off. Among them, temporary food assistance, psychological support, and job placement assistance.
Millpar’s CEO, Ettore Giacomet Basile, stated that the decisions were extremely difficult. “We regret losing part of a team of excellent collaborators, but we must also think of those who remain,” he said. He emphasized that the measures are necessary to ensure the sustainability of the business.
Products and Focus on the International Market
Millpar operates in the production of moldings, baseboards, ceilings, panels for packaging, as well as components for furniture, windows, and stairs.
The company’s focus is on exports, with the United States representing the largest consumer market.
This scenario of strong dependence has left the industry vulnerable to sudden changes in U.S. trade policy. The tariff, therefore, directly impacted its operational structure in Paraná.
Trump’s Tariff
The decree signed by President Donald Trump came into effect on August 6. The measure raised the import tariff on a range of Brazilian products to 50%.
The document also presented a list with 700 exceptions, favoring strategic sectors such as aerospace, energy, and part of agribusiness. However, the wood products manufactured by Millpar were not included.
The additional charge raised concerns among various industries in Paraná. Small towns, in particular, felt the direct effects of the changes because they heavily depend on manufacturing activity.
In addition to Guarapuava and Quedas do Iguaçu, municipalities such as Jaguariaíva, Telêmaco Borba, Bituruna, and Ventania also reported impacts. All are part of a group of localities where wood and furniture production is essential to the local economy.
State Exports
Data from the Federation of Industries of Paraná (Fiep) shows that, in 2024, the state exported approximately US$ 1.58 billion to the United States.
Of this amount, about US$ 1.19 billion came from sectors such as wood, furniture, meat, coffee, leather, footwear, paper, cellulose, juices, and others.
These sectors guarantee more than 380,000 direct jobs and 240,000 indirect ones in the state. Only in the first half of 2025, Paraná had already exported US$ 735 million to Americans.
Support Measures
To mitigate the effects of the taxation, the Federal Government announced, on August 13, the first part of a package of measures.
Among the actions are the creation of a credit line of R$ 30 billion and tax flexibility.
At the state level, the government of Paraná also launched, on July 25, a set of similar initiatives.
The package includes special credit lines and flexibilities to try to reduce pressure on companies.
The Timber Sector
According to the Paranaense Association of Forest-Based Enterprises (Apre), the wood sector is strategic for the state.
It accounts for approximately 400,000 jobs, among forestry workers and in industry.
Only in 2024, Paraná exported more than US$ 627 million in forest products, including moldings, plywood panels, sawn wood, and various types of cellulose.
At the end of July, the Brazilian Association of Mechanically Processed Wood Industry (Abimci) highlighted that most wood products were left off the list of tariff exceptions.
The entity reported that, in this way, the additional tariff of 40% applies to the already existing reciprocal rates of 10%, which have been in effect since April.
This extra burden further reduced the competitive margins of Brazilian industries.
Consequences on the Horizon
The case of Millpar is a snapshot of the immediate effects of Trump’s tariff in Paraná. While some units are trying to remain operational, others have already closed down.
The company stated that it will continue operating the Guarapuava plant, but with a reduced staff.
The one in Quedas do Iguaçu will cease operations definitively, marking yet another chapter in the crisis faced by the exporting timber sector.
With information from G1.
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