On July 10th, the Brazilian Chemical Industry Association, representing Brazilian chemical producers, expressed concern over President Trump’s threat to impose a 50% tariff on Brazilian exports, and called for resolving the dispute through technical dialogue.
The Brazilian Chemical Industry Association stated in its written response to Astec that the imposition of tariffs by the United States has a significant impact on the Brazilian chemical industry. This is not only because the industry directly exports products to the United States, but also because the chemical industry provides key raw materials for major export businesses such as food processing and pulp and paper production. The association noted that in 2024, there was a significant trade deficit between the Brazilian chemical industry and the United States. Brazil imported approximately $10.4 billion worth of products from the United States and exported only $2.4 billion, resulting in a trade deficit of approximately $8 billion with the United States. Several sub-sectors of the US petrochemical industry export heavily to Brazil. If Brazil retaliates with reciprocal tariffs, these sectors may be severely affected.
The Brazilian Chemical Industry Association stated: “The Brazilian chemical industry advocates that international trade relations should be entirely based on mutual benefit, win-win cooperation and free market principles, and should follow the rules of the World Trade Organization (WTO). In cases where there may be political interference, we believe that technical dialogue is the best way to solve the problem, and it is necessary to avoid potential losses for all parties through negotiations.”