The Section 301 investigation ended without granting the furniture industry a broad exemption. The measure takes effect July 22 and comes as Brazilian furniture exports to the U.S. are already down 41.7% in 2026.
The United States has confirmed an additional 25% tariff on a broad range of imports from Brazil. Announced following the conclusion of an investigation by the Office of the United States Trade Representative (USTR) under Section 301 of the Trade Act of 1974, the measure will take effect on July 22, 2026.
The final decision covers a significant share of Brazilian exports, although U.S. authorities added more than 400 tariff codes to the exemption list compared with the original proposal. For Brazil’s furniture industry, however, the outcome is unfavorable.
Despite an extensive technical defense led by ABIMÓVEL (Brazilian Furniture Industry Association) in partnership with BMJ Consultores Associados, most Brazilian furniture products will be subject to the additional duty. The measure covers residential and commercial furniture, mattresses, and a range of products made from wood, metal, and plastic, except for tariff codes specifically exempted or already covered by other trade measures.
What changes for the furniture industry
The additional tariff will apply to goods shipped to the United States on or after today, July 22. However, a transition rule—extended following the official announcement—allows shipments already in transit to be exempt from the additional tariff, provided they clear U.S. customs before 12:01 a.m. Eastern Time on July 29.
The additional 25% duty will be charged on top of the regular customs rate assigned to each product under the Harmonized Tariff Schedule of the United States, or HTSUS.
For furniture manufacturers, the most immediate consequence will be a higher cost of accessing the U.S. market. Although the tariff is formally paid by the importer, its financial impact is likely to be shared across the commercial chain. U.S. buyers may seek to renegotiate contracts, push for lower supplier prices, reduce order volumes, or pass part of the cost on to retailers and consumers. Brazilian manufacturers, meanwhile, will need to determine how much of the increase they can absorb without undermining margins and whether higher prices could make competing suppliers from other countries more attractive.
The effects will vary by product category and market positioning. Higher-value furniture may have greater pricing power, while standardized, price-sensitive lines will face a higher risk of substitution. Companies will also need to review contracts, shipping schedules, Incoterms, tax responsibilities, and payment terms, particularly for transactions planned over the coming weeks.
Furniture companies now face multiple tariff regimes
Some Brazilian furniture products were already subject to additional 25% duties under Section 232, a provision of U.S. trade law used in investigations involving national security. This category includes certain upholstered wood furniture, kitchen cabinets, bathroom vanities, and related parts.
The Section 301 action initially indicated that products already covered by Section 232 would not also be subject to the new duty, preventing the two tariffs from being stacked. The practical implementation of this treatment, however, will depend on additional regulations, individual tariff classifications, and the procedures adopted by U.S. Customs and Border Protection. The issue remains under review
Furniture is affected by a probe focused on unrelated issues
The investigation behind the new tariff covered issues extending well beyond trade in physical goods. Its main areas of concern included Pix, Brazil’s instant-payment system; regulation of digital platforms; access to Brazil’s ethanol market; preferential tariffs granted to products from other countries; intellectual property enforcement; anti-corruption efforts; and illegal deforestation.
The exemption list also reveals a distinction between raw materials and higher-value manufactured products. Several tariff codes covering chemical wood pulp, cellulose, and materials used by the paper industry were excluded from the new duty. The exemptions were not broadly extended to MDF, particleboard, HDF, plywood, OSB, wood laminates, veneer, moldings, furniture components, or finished furniture.
During its review of public comments, the USTR acknowledged that some Brazilian products have no equivalent domestic supply in the United States or cannot easily be replaced by U.S. producers. The agency nevertheless concluded that limited domestic availability alone did not justify an exemption when alternative suppliers could potentially be found in third countries.
Industry defense highlighted the complementary trade relationship
With support from BMJ Consultores Associados, ABIMÓVEL submitted a technical defense to the USTR and participated in the public hearings held in Washington on July 6 and 7. The association argued that Brazilian furniture does not pose a threat to U.S. manufacturers. Although the United States has historically been the leading destination for Brazilian furniture exports, Brazil accounts for only about 0.7% of total U.S. furniture imports.
Vietnam, Mexico, and China, by comparison, collectively supply nearly two-thirds of the furniture imported by the United States.
Approximate Share of the Main Suppliers in U.S. Furniture Imports
| Ranking | Country | Approximate Share of U.S. Imports |
|---|---|---|
| 1 |
Vietnam
|
26.4% |
| 2 |
Mexico
|
22.0% |
| 3 |
China
|
15.3% |
| 4 |
Canada
|
8.1% |
| 5 |
Italy
|
3.5% |
| 6 |
India
|
3.0% |
| 7 |
Malaysia
|
2.3% |
| 8 |
Indonesia
|
2.2% |
| 9 |
Poland
|
2.0% |
| 10 |
🌍
Other countries (including Brazil)
|
about 15% |
Those figures support the industry’s position that the relationship between the Brazilian and U.S. furniture sectors is complementary rather than directly competitive. The submission also highlighted reliable supply, products tailored to the needs of U.S. buyers, compliance with labor and trade standards, traceability, and the predominant use of raw materials sourced from sustainably managed planted forests.
Brazilian furniture exports to the U.S. are already down 41.7%
The tariff takes effect as Brazilian furniture and mattress shipments to the United States are already declining sharply. From January through May 2026, exports to the U.S. totaled $49.6 million, down 41.7% from the same period in 2025. The U.S. share of Brazilian exports in the segment fell from 27.8% to 17.4%.
The decline coincides with a period of repeated tariff changes. In April 2025, Brazilian products became subject to an additional 10% duty. In August, tariffs on several categories were increased under a broader package that raised duties to as much as 50%. Certain wood furniture products were later moved under the separate Section 232 regime.
The effects were already evident by the end of 2025, when Brazilian furniture and mattress exports to the United States fell 19.9% to $181 million. The new 25% tariff therefore adds to trade pressure that had already been reducing bilateral shipments.
Overall, Brazilian furniture and mattress exports totaled $284.8 million from January through May 2026, down 6.9% year over year. Excluding the United States, exports to all other destinations increased by approximately 6.4%. That growth offset part of the decline in U.S. sales, but not enough to fully compensate for it.
U.S. defends the measure; Brazil announces response
U.S. Trade Representative Jamieson Greer said the tariffs were necessary to address practices Washington considers unfair and to ensure that U.S. workers and companies can compete on a level playing field.
The Brazilian government condemned the decision, describing it as a “regrettable milestone” in relations between the two countries. In an official statement, Brasília said unilateral tariffs were unjustified and noted that the United States had accumulated a $424.5 billion surplus in goods and services trade with Brazil over the past 15 years.
According to the Brazilian government, 76% of U.S. imports entered Brazil duty-free in 2025, while the average tariff effectively applied to U.S. goods was 3.1%. Brazil said it would begin procedures under its Reciprocity Law and bring the issue back before the World Trade Organization’s dispute-settlement mechanism. The government also announced support measures for affected companies and said it would continue working to open new markets.
Despite their opposing positions, both governments have kept negotiating channels open. For furniture manufacturers, however, the immediate priority is adapting to the rules scheduled to take effect on July 22.
Separate investigation remains underway
Brazil is still awaiting the outcome of a separate U.S. investigation involving measures to prevent imports of goods made with forced labor. The proposal includes an additional 12.5% tariff on products from 60 economies and could, in some industries, be stacked with the Section 301 duty.
Furniture products do not currently appear among the tariff codes covered by that separate investigation. The industry is therefore not expected, at this stage, to face a combined additional tariff of 37.5%, although the final treatment will depend on the decision and implementing regulations.
FURNITURE IS OUR BUSINESS
Brazilian Association of Furniture Manufacturers — ABIMÓVEL
Press Office: press@abimovel.com | +55 14 99156-0238
