Rising U.S. tariffs are impacting the life of many furniture manufacturers in Sao Bento do Sul, a city known as one of the largest exporters of furniture in Brazil.
Workers, business owners and government officials have expressed strong concerns about the unilateral U.S. move to raise the tariff rate to 50 percent for Brazil products.
Some residents have already begun experiencing unemployment and reduced family income.
"I am very worried about the U.S. tariff policy. I have worked in the furniture industry for many years. My husband and many of our relatives and friends are also working in this industry. Now we are having fewer working days, and shrinking benefits and wages. Life is becoming increasingly harder, and many people are to be out of work," said Jessica, a worker of a local furniture company.
Furniture manufacturing is the pillar industry and the main source of export income for Sao Bento do Sul.
The U.S. tariff policy has brought a series of negative effects on the local furniture industry and the city's economy.
"Generally speaking, the U.S. tariffs are harmful and will hinder a huge quantity of exports. They will not only affect the furniture industry, but also other industries, such as metals and machinery. It is indeed an impact," said Gerson, manager of a local company.
Antonio Tomazini, mayor of Sao Bento do Sul, said the U.S. tariff policy is highly provocative and destructive, and Brazil should avoid over-reliance on a single market and should pace up trade diversification.
"We have more than 300 furniture companies here. And products of many other industries are also exported in large quantities to the U.S. Some companies have already stopped production, and the employees are on leave collectively. Business owners are deeply worried and have no idea what to do. Undoubtedly, we will face unemployment. In the long term, this will lead to the decline in the city's tax revenue and investment capacity. We will face a grave problem of reduced fiscal revenue," he said.
U.S. President Donald Trump signed an executive order on Wednesday to impose an additional 40 percent tariff on Brazilian goods, bringing the total tariff amount to 50 percent.
This rate of duty shall be effective on Aug 6 with respect to goods entered for consumption or withdrawn from warehouse for consumption.
US tariff hike impacts furniture exporters in Brazil
US tariff hike impacts furniture exporters in Brazil
