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Trump’s Tariff Hike Closes Production Lines in Brazil; Factory in Paraná Sends 640 Employees on Collective Vacation and Wood Exports May Plummet

Written by Débora Araújo
Published on 28/07/2025 at 15:41
Tarifaço de Trump já fecha linhas de produção no Brasil; fábrica no Paraná manda 640 funcionários para férias coletivas e exportação de madeira pode despencar
Tarifaço de Trump já fecha linhas de produção no Brasil; fábrica no Paraná manda 640 funcionários para férias coletivas e exportação de madeira pode despencar
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50% Tariff Imposed by the US on Brazilian Exports Forces Millpar to Give Collective Vacation to 640 Employees in Paraná, Amid the Risk of Decline in Wood Products Exports.

The wood-based products manufacturer Millpar announced a 15-day collective vacation for 640 employees at its Guarapuava unit, in central Paraná. The measure, announced last week, affects 57.7% of the company’s total workforce, which totals 1,109 workers distributed between the Guarapuava and Quedas do Iguaçu plants.

According to the company’s press office, the decision is directly related to the 50% tariff imposed by the United States on Brazilian exports, which recently came into effect. The North American market is the main destination for Millpar’s products.

Production Directed to Export

The company produces frames, moldings, baseboards, ceilings, packaging panels, components for stairs, windows, furniture, and other wood-based items. A large part of the production is aimed at export, and the manufacturing sector of exported products was the most affected by the collective vacations.

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Millpar’s advisory stated that the collective vacations are a strategic measure to adjust production in light of the new scenario.

“These are necessary actions to preserve the company and ensure the sustainable advancement of operations in the long term,” the company stated in a note.

Possibility to Extend the Measure

The industry has not ruled out expanding the collective vacations to more workers in the coming weeks. The decision will depend on the evolution of commercial negotiations and the effects of the tariffs imposed by the United States on Brazilian exports.

For now, the measure only affects the Guarapuava plant. The Quedas do Iguaçu unit, located in the central-southern region of Paraná, continues operations normally.

Paraná Wood Sector Depends on North American Market

According to the Paraná Association of Forest-Based Companies (Apre), Paraná is among the leading exporters of wood products to the United States. The sector generates around 400,000 direct and indirect jobs in the state, considering forestry workers and employees in the industry.

In 2024, Paraná’s exports of forest products, such as frames, plywood panels, sawn timber, and cellulose, exceeded US$ 627 million. The expectation is that the tariffs imposed by the United States may reduce the exported volume in the coming months.

Context of US Tariffs

The new tariffs were announced by the U.S. government as part of President Donald Trump’s trade measures package. The 50% tariff impacts a range of Brazilian products and directly affects companies that rely on sales to the United States.

The situation has already provoked reactions from productive sectors and the Brazilian government, which seeks to reverse the decision through diplomatic negotiations. A delegation of lawmakers and representatives from the Itamaraty is in the US to try to open a dialogue channel.

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Millpar, whose production is heavily directed to foreign markets, joins other companies that are evaluating adjustments to cope with the loss of competitiveness caused by the tariffs. If the surcharges are maintained, industry associations expect the impact to reflect on employment and income generation throughout the Paraná forestry chain.

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Cansado
Cansado
29/07/2025 07:16

Isso é mentira! A tarifa nem entrou em vigor e já faliu? Balela!!!
Essa empresa é do sul do Brasil, reduto de comedores de capim! E isso é uma mentira para desestabilizar o governo e desinformar a população! Sem contar que, comedores de capim, têm mais é que se lascar!

Débora Araújo

Débora Araújo é redatora no Click Petróleo e Gás, com mais de dois anos de experiência em produção de conteúdo e mais de mil matérias publicadas sobre tecnologia, mercado de trabalho, geopolítica, indústria, construção, curiosidades e outros temas. Seu foco é produzir conteúdos acessíveis, bem apurados e de interesse coletivo. Sugestões de pauta, correções ou mensagens podem ser enviadas para contato.deboraaraujo.news@gmail.com

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