Brazil cites Amazon deforestation drop in tariff dispute with U.S.

Brazilian officials said Thursday that Amazon deforestation fell sharply in May, using the new figures to challenge a Trump administration trade case behind proposed U.S. tariffs. The dispute matters beyond trade because deforestation is Brazil’s largest source of greenhouse gas emissions, according to the Associated Press, and the Amazon helps regulate climate well outside South America.

The National Institute for Space Research, known as INPE, and Brazil’s Ministry of Environment said Amazon deforestation in May was 61.4% below the level recorded in May 2025. Officials said 370 square kilometers, or nearly 143 square miles, of rainforest were still cleared during the month.

Brazilian officials also reported a 12% decline in deforestation over the same period in the Cerrado, the central Brazilian savanna that the Associated Press described as facing long-running pressure from agribusiness.

Brazil rebuts U.S. tariff rationale

The announcement followed a June 2 move by the Trump administration to propose 25% tariffs on imports from Brazil. The Office of the U.S. Trade Representative accused Brazil of illegal deforestation, unfair tariffs and other trade practices it said harmed U.S. commerce, according to the Associated Press.

Environment Minister João Paulo Capobianco said the May data undercut the U.S. claim that deforestation justified new tariffs. President Luiz Inácio Lula da Silva was present for the announcement and nodded as Capobianco spoke, according to the Associated Press.

Lula accused the Trump administration of making false claims in earlier tariff actions by saying the United States had a trade deficit with Brazil. He also said U.S. officials did not understand Brazil’s work toward ending deforestation by 2030, a goal he described as a decision by his government rather than a mandate from United Nations climate talks.

Lula said Brazil sees reducing deforestation as part of its obligation to the planet, the Amazon and Brazil itself. He said preventing forest loss serves both national and global interests, according to the Associated Press.

Lowest May reading, minister says

Capobianco said May’s Amazon deforestation figure was the lowest ever recorded for that month. He said May often brings higher forest clearing because it coincides with the start of the Amazon dry season.

For the 10 months from August 2025 through May 2026, Amazon deforestation was down 37.5% from the comparable earlier period, Brazilian officials said. Capobianco said Brazil was on course for its lowest annual deforestation levels once data is consolidated in the next semester.

The Associated Press reported that Amazon deforestation reached record levels in the 1990s and 2000s, then declined until the 2019-2022 administration of President Jair Bolsonaro. Bolsonaro’s government was widely criticized for weakening environmental protections, according to the Associated Press.

Under Lula, forest clearing has fallen again, reaching its lowest level in a decade last year, the Associated Press reported.

Forest risks remain

Scientists warn that Amazon forest loss can speed global warming and affect agriculture as far away as the U.S. Midwest and parts of Europe, according to the Associated Press. The rainforest is the world’s largest and plays a major role in climate regulation.

Brazil’s progress against clear-cutting does not remove other dangers to the forest, the Associated Press reported. Wildfires, logging and drought drive forest degradation, which affects about 40% of the Amazon and has outpaced clear-cutting in recent years.

The Associated Press reported that a strong El Niño could worsen those pressures this year by bringing hotter and drier conditions to the rainforest, raising the risk of wildfires.

This story draws on original reporting from Fortune.