The Brazilian Chemical Industry Association, known as Abiquim, has requested that the U.S. government exempt Brazil's chemical sector from newly proposed tariffs.
This request comes as the industry fears a significant increase in operational costs that could weaken Brazil's competitive position in the global market. The association said that these trade barriers would not only hurt domestic producers, but could also create a strategic advantage for Chinese rivals.
U.S. President Donald Trump proposed a 25% tariff [1] on certain Brazilian imports. This measure was introduced under Section 232, a trade provision that allows the U.S. to impose tariffs based on national security concerns [2]. The proposal was announced on the first Monday of the month during a period of shifting trade policies.
Abiquim President André Passos Cordeiro has been leading the effort to engage with the U.S. Trade Representative to secure an exclusion for the chemical sector [3]. The association said that the chemical industry is vital for the supply chain, and that imposing these costs would be counterproductive to the economic stability of an allied nation.
While the chemical sector remains concerned, other industrial areas have seen some relief. President Trump previously announced temporary exemptions for certain allied products, specifically reducing the impact of tariffs on copper, steel, and aluminum [4].
Brazilian industry leaders continue to monitor the situation closely. They said that the 25% tariff [1] would create an undue burden on manufacturers who rely on the exchange of chemical goods between the two nations. The industry is now waiting for a formal response from the U.S. Trade Representative regarding the specific exemptions for chemical products [3].
“Abiquim requested that the Brazilian chemical sector be excluded from newly proposed U.S. tariffs.”
The tension between U.S. national security trade policies and the economic interests of allies highlights a volatile trade environment. By utilizing Section 232, the U.S. is prioritizing domestic security over traditional trade partnerships, which may force allied nations like Brazil to either absorb higher costs or seek alternative trade partners, potentially increasing the influence of China in the Western Hemisphere.
