Proposed 10% to 12.5% surcharge is part of a Section 301 investigation covering 60 economies; furniture and wood products, however, remain subject to the tariffs currently in force under Section 232
One day after concluding its Section 301 investigation into Brazil — in which it found that Brazilian practices across six areas were discriminatory and burdened or restricted U.S. commerce — the Office of the United States Trade Representative (USTR) released, on June 2, 2026, the findings of a new investigation, also conducted under Section 301. This time, the case focuses on the alleged failure of 60 economies to adopt and effectively enforce prohibitions on the importation of goods produced with forced labor.
Brazil was included among the countries for which USTR recommended an additional 12.5% tariff. The measure, however, is not yet in effect. The process will now move through a public comment period, with written comments due by July 6, 2026, and a public hearing scheduled for July 7 in Washington, D.C. Only after this stage will the U.S. government decide whether to formally adopt the proposed tariffs, as well as any potential changes to their scope or rate.
Impact on the furniture industry
For Brazil’s furniture industry, the key point is to distinguish this new front from the measures that were already affecting wood and wood-derived products. The proposed surcharge related to forced labor does not, at this time, change the tariff regime for furniture products already covered by Section 232.
As a result, the previously announced tariff conditions remain in place: for softwood and lumber, the current tariff remains 10% ad valorem; for upholstered wooden furniture, the rate remains 25%, with the increase to 30% postponed to January 1, 2027; and for kitchen cabinets and bathroom vanities, including parts, the current tariff is 25%, with the increase to 50% also postponed to January of next year.
Understanding the difference between these instruments is essential. Section 232 is used by the United States on national security grounds. Section 301, by contrast, is a trade law mechanism used to examine practices considered unjustifiable, discriminatory, or harmful to U.S. commerce.
In the investigation concluded on June 2, Section 301 was applied to a broad forced labor inquiry involving 60 economies and providing exemptions for goods already subject to Section 232. Therefore, although the measure is part of the same broader environment of increased U.S. trade pressure on other markets, it should not be confused with the tariffs already applicable to Brazil’s furniture sector.
Among the economies investigated are Brazil, Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Cambodia, Canada, Chile, China, Colombia, Costa Rica, the Dominican Republic, Ecuador, Egypt, El Salvador, the European Union, Guatemala, Guyana, Honduras, Hong Kong, India, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Turkey, the United Arab Emirates, the United Kingdom, Uruguay, Venezuela, and Vietnam.
ABIMÓVEL monitoring and response
ABIMÓVEL (Brazilian Furniture Industry Association) is monitoring the different tariff fronts opened by the United States and is actively working on the necessary technical and institutional submissions, under the coordination of foreign trade specialist Welber Barral and BMJ – Associated Consultants. The association also remains in dialogue with the Brazilian Federal Government and institutional partners to assess potential changes in scope, exemptions, and commercial impacts that may affect Brazil’s furniture industry.
This work reinforces the importance of a technical, analytical, and sector-specific reading of the announced measures, grounded in evidence demonstrating the regularity of Brazil’s furniture production base, its fair trade practices, the predominant use of legal raw materials, planted forests, regulated forest management, auditable industrial processes, and increasing standards of origin, traceability, social responsibility, and compliance.
ABIMÓVEL will continue to keep the sector informed about new developments related to U.S. trade measures, with the goal of supporting business decisions, preserving strategic markets, and contributing to a balanced trade relationship between Brazil and the United States.
Official information is available at:
https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-makes-findings-and-proposes-action-60-section-301-investigations-relating-failures-take-action
About ABIMÓVEL
The Brazilian Furniture Industry Association — ABIMÓVEL — has been working for nearly five decades to defend, develop and strengthen Brazil’s furniture value chain. The association promotes a positive agenda for the sector, supporting more than 22,800 companies that generated over R$ 92.1 billion in business in 2025 and 287,200 direct jobs, within a productive chain that employs around 1.1 million workers indirectly.
Throughout its history, ABIMÓVEL has led a series of programs and initiatives focused on business development, competitiveness, design, sustainability, technical standardization, innovation and the internationalization of the industry, helping expand the positioning of Brazilian furniture both domestically and globally. Brazil is currently the largest furniture producer in Latin America and the seventh largest in the world — a position that reflects the strategic relevance of a diverse, widespread and market-connected productive chain.
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