The decree published on July 30 by the United States Government (USA), which officialized the 50% tax proposal for some Brazilian products Starting on August 6, it is bringing “relevant impacts” to the country’s chemical industries, including those that produce inputs and raw materials for Brazilian export sectors, such as furniture, textiles, leather and rubber. 
According to the Brazilian Association of Chemical Industry (Abiquim), some of its members begin to report cancellations of requests from American clients. The decree published last Wednesday brought about 700 exceptions Super tax, but did not include most products that are exported by the Brazilian chemical industry.
According to Abiquim, the United States maintain a sectoral surplus against the Brazilian chemical industry, with annual balance close to $ 8 billion. “In 2024, the effective tax rate applied by Brazil to US industrial chemicals was 7.7%, considering the average imported value. Brazilian exports of chemicals to the US added US $ 2.4 billion in 2024.”
Of the total of chemicals exported to the United States last year, most (82%) were concentrated in 50 NCM codes (Common Mercosur Nomenclature). Among these items were basic petrochemicals, organic intermediates and thermoplastic resins.
“Of these 50 main items, only five will not be affected by the new additional fare and represented US $ 697 million exported by Brazil to the US in 2024. The other items – equivalent to $ 1.7 billion – will be taxed with an additional 40%rate, resulting in a total load of 50%,” the association complained.
For Abiquim, it is necessary to “seek ways to mitigate the impacts on the sector” through “constructive dialogue and bilateral cooperation”.
The entity says it supports the performance of the Ministry of Development, Industry, Commerce and Services and other Brazilian authorities in search of a rapid and effective solution through diplomatic and commercial channels with the US.
In a statement, the Association reports that, along with the American Chemistry Council, prepared a statement that was delivered to Brazilian and American authorities requesting “concrete actions to avoid damage to productive integration and the resilience of chemical supply chains between the two countries”.
In the same note, Abiquim defended the adoption of emergency measures, including the application of the provisional anti -dumping defense right and the reinforcement of human and technological resources for rapid response to trading deviations. The Association also defends the immediate return of Balances Credit Tax on Circulation of Goods and Services (ICMS), the creation of new export financing lines and the expansion of Reintegra, a program that encourages the export of manufactured products.
