BRAZIL

US Imposes 37.5% Additional Tariff on Most Brazilian Furniture

On July 24, the new 12.5% tariff on Brazilian products took effect in the US, replacing the 10% temporary flat rate that had been in place since February and stacking on top of the 25% tariff on Brazilian products that took effect on July 22. As a result, some Brazilian exports to the US face tariffs as high as 37.5%.

The furniture industry is among the hardest hit. Since most tariff codes related to furniture and mattresses are not covered by the exemptions applicable to Brazil, multiple product categories are affected by the new tariffs.

Some upholstered furniture with wooden frames, such as sofas, armchairs, and chairs, as well as certain parts for kitchen cabinets, bathroom cabinets, and cupboards, are subject to specific provisions under Section 232. If these products are correctly classified under their respective tariff codes, they should be exempt from the new 12.5% additional tax. However, this does not mean they are exempt from surcharges altogether: these categories are still subject to the 25% surcharge under Section 232.

Brazilian Industries Affected by US Tariffs to Receive Government Support

The Brazilian government announced on July 16 that it would relaunch a support program aimed at assisting industries affected by US tariff hikes.

Brazil rejects the US justification for imposing a 25% tariff on certain Brazilian products; the US claims this is a response to Brazil's alleged "unfair" trade practices. The new tariffs took effect on July 22.

According to Brazil's Ministry of Development, Industry, Trade and Services, the hardest-hit sectors include wood products, machinery and electrical equipment, furniture, ceramic products, footwear, and sugar. These industries are expected to receive credit lines for working capital and investment, as well as support in exploring new markets and customers.

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MEXICO

Mexico Expands Forest Restoration Efforts Under National Strategy

Mexico is expanding its national forest restoration strategy through new investments and reforestation projects, aiming to restore over 151,000 hectares of forest to enhance climate resilience, strengthen watershed protection, and promote rural development. During the "National Tree Day" event in Oaxaca, Environment Minister Alicia Bárcena stated that as part of the broader national forestry policy, the current administration plans to plant 15.5 million trees and restore 32,764 hectares of forest during 2025 and 2026.

Oaxaca Governor Salomón Jara emphasized that community participation has always been central to the state's forest protection strategy, highlighting the important role of the "tequio" (collective work) model as a long-standing traditional practice supporting ecosystem restoration. He noted that seedling production for reforestation in Oaxaca has been steadily increasing: from 8.5 million in 2023 to 10.6 million in 2024 and 10.8 million in 2025. The state's goal is to produce 17 million seedlings in 2026.

Sergio Graf Montero, Director of Mexico's National Forestry Commission (CONAFOR), announced that additional restoration work on 24,000 hectares would be initiated this year in key areas nationwide.

Mexico Launches "Environmental Capital Fund"

Mexico's Ministry of Environment and Natural Resources (Semarnat), Ministry of Finance and Public Credit (SHCP), and the Development Bank of Latin America and the Caribbean (CAF) jointly launched the "Environmental Capital Fund" for Mexico. This mechanism aims to channel resources towards projects focused on natural capital conservation and restoration, climate action, and sustainable development.

The fund has an initial mobilization target of up to USD 10 million, with potential for growth by attracting new domestic and international contributors. These funds can be used for projects in ecological restoration and conservation, natural capital protection, sustainable soil and water management, circular economy, bioeconomy, air quality improvement, and climate action, aligning with Mexico's environmental priorities and the 2025-2030 National Development Plan.

Mexican Government Restructures National Forestry Commission, Achieves Gender Parity

Mexico's Ministry of Environment and Natural Resources (SEMARNAT) and the National Forestry Commission (CONAFOR) have completed the restructuring of the National Forestry Commission (CONAF) for the 2026-2029 term, aiming to achieve gender parity, broaden representation, and strengthen the participation of indigenous and Afro-Mexican communities. This move is part of the government's efforts to improve forest governance while addressing growing climate and environmental challenges.

The highlight of the new structure is the achievement of gender parity for the first time. "For the first time in its history, the National Forestry Commission has been formed on the basis of gender parity, which represents significant progress. Now, both on the Council and in the leadership of the various technical committees, seats are distributed equally between men and women," said the Minister of Environment and Natural Resources.

The new organizational structure also includes, for the first time, dedicated representation seats for women's organizations and groups, further strengthening women's participation in consultation, dialogue, and decision-making.

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ECUADOR

Ecuadorian Government Allocates Over USD 1 Million to Strengthen Forest Protection

The national government launched the "2026-2029 Forest Protection Project" in Puyo, an initiative aimed at strengthening the protection of native ecosystems by providing economic incentives to communities carrying out conservation and sustainable production actions.

During the event, the Ministry of Environment and Energy disbursed over USD 1 million in conservation incentive funds, benefiting 183,156 people participating in the program across different regions of the country.

According to the Ministry, these funds will be used for sustainable forest management, ecosystem protection, and the promotion of bio-industries (creating alternative economic sources for communities), aiming to combine environmental protection with local development.

According to official data, the Forest Protection Project has made possible the conservation of over 1.8 million hectares of native ecosystems through nearly 2,500 conservation agreements signed in 23 provinces of mainland Ecuador.

Ecuador's "Sustainable Productive Forestry Revitalization" Project Progress

Ecuador's Ministry of Agriculture, Livestock, and Fisheries (MAGP) announced that the "Sustainable Productive Forestry Revitalization" project has allocated USD 1.09 million to establish commercial plantations covering a total area of 2,245.68 hectares across 18 provinces of mainland Ecuador.

This initiative aims to strengthen forestry production through technical assistance and financial support, benefiting producers growing species such as balsa, teak, melina, laurel, pachaco, highland eucalyptus, and chuncho.

According to MAGP data, Ecuador currently has approximately 172,000 hectares of commercial plantations, supplying domestic and export markets. In addition, under sustainable forest management plans, an average of 28,000 hectares of forest are harvested annually.

The sector's performance is also reflected in foreign trade. According to the Ministry, total forestry product exports exceeded USD 1.98 billion over the past three years; in 2025 alone, exports exceeded USD 738 million, setting the highest annual record for the period.

Ecuador's main export destinations include China, the United States, Peru, Colombia, and India. In terms of trading blocs, the largest markets are the Andean Community (CAN), the Association of Southeast Asian Nations (ASEAN), and the US-Mexico-Canada Agreement (USMCA/T-MEC) region.

Five Amazon Countries Conduct Joint Operations

Law enforcement authorities from Bolivia, Brazil, Colombia, Ecuador, and Peru conducted a large-scale joint operation against environmental crimes in the Amazon region, resulting in the arrest of 839 individuals and the seizure of large quantities of illegally obtained timber, minerals, and wildlife.

The operation, named "Operation Green Shield 2026," was conducted from July 15 to 31, mobilizing over 3,600 law enforcement personnel to conduct synchronized crackdowns on illegal mining, unauthorized logging, wildlife smuggling, fuel smuggling, and illegal land occupation in the Amazon Basin.

During the operation, law enforcement personnel conducted 1,045 operations in remote areas, mainly border zones and river routes utilized by criminal organizations. Ultimately, authorities seized over 280,000 cubic meters of illegally logged timber and 195 tons of minerals (including gold, iron, and copper), along with machinery and equipment used for illegal mining activities.