According to www.cnnbrasil.com.br, the U.S. government has allocated $80 million to expand domestic timber production and strengthen forest management — just days after imposing a 25% tariff on most Brazilian processed wood products.
USDA Announces Dual-State Investment
The U.S. Department of Agriculture (USDA) announced the funding on 25 July 2026, directing resources through two existing loan guarantee programs: the Wood Production Expansion Loan Guarantee Program and the Business and Industry Loan Guarantee Program. The investment targets projects in Oregon and Nevada, with $50 million earmarked for Tahoe Forest Products in Nevada and $30 million for Clatskanie Scion LLC in Oregon.
The Nevada project will install new dryers, a sawmill, and a sawing line to produce value-added lumber for distributors and major construction firms. In Oregon, the funds will finance a new sawmill and expand industrial wood product manufacturing — a development expected to create at least 35 jobs.
Strategic Alignment with Trump-Era Goals
According to the USDA, the investment supports the former administration’s objective to increase domestic timber output by 25%, reduce wildfire risk, and strengthen the U.S. forest products supply chain. Brooke Rollins, U.S. Secretary of Agriculture, stated:
“These investments will reinforce the American timber industry, expand wood processing capacity, generate rural jobs, and support sustainable forest management.” — Brooke Rollins, U.S. Secretary of Agriculture
Todd Lindsey, USDA’s Acting Under Secretary for Rural Development, emphasized the dual benefit of processing infrastructure: stimulating rural economies while removing hazardous fuel loads that contribute to wildfires. Since launching the program, the USDA reports it has committed $165.2 million to timber industry expansion projects across ten U.S. states.
Brazilian Industry Faces Mounting Pressure
The timing underscores intensifying trade friction. The U.S. Trade Representative (USTR) recently applied a 25% tariff under Section 301 on nearly all major Brazilian forest products, plus an additional 12.5% on items linked to forced labor allegations. According to the Abimci (Brazilian Association of Mechanically Processed Wood Industry), approximately 40% of Brazil’s total processed wood output is exported to the U.S. — representing half of the country’s export volume, which itself accounts for about 80% of national production.
Abimci estimates prior tariffs — including a 50% rate imposed in 2025 — cost the sector roughly $500 million in lost trade that year. In response to falling demand, several Brazilian mills implemented collective layoffs or mandatory leave periods to curb output. The new $80 million U.S. investment reinforces a clear policy shift: simultaneously scaling domestic capacity while tightening import barriers — a dynamic that heightens competitive pressure on Brazilian exporters.
Source: cnnbrasil.com.br
Compiled from international media by the SCI.AI editorial team.
