Abiquim, an association that represents chemical companies in Brazil, where large US companies such as Exxonmobil and Dow Chemical operate, expressed “profound concern” about a US decree that raises tariffs on Brazilian exports to 50%.
The Brazilian chemical sector is intrinsically linked to the US, Abiquim said in a statement on Friday, describing a relationship marked by “integration” and “cross investments”.
“The impact will be significant on Brazilian exports of chemicals, compromising productive chains, jobs and investments in Brazil and the US,” said Abiquim CEO André Passos Cordeiro in the statement.
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More than 20 chemical companies installed in Brazil are US capital, according to Abiquim.
Along with the American Chemistry Council (ACC), ABIQUIM said it filed a joint statement to the Brazilian and American governments “requesting actions to avoid damage to productive integration and resilience of chemical supply chains, focusing on trade facilitation measures and regulatory cooperation.”
Brazil, which exported US $ 2.4 billion in chemicals to the US last year, has a commercial deficit of nearly $ 8 billion with the US in this sector, according to commercial data cited by ABIQUIM.
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The July 30 decree of US President Donald Trump affects about $ 1.7 billion in annual exports of Brazilian chemicals to the US, exempting only five products, which represented $ 697 million in sales to the US in 2024.
In addition to direct exports, Abiquim said the sector will suffer even more, as chemicals have applications in industries such as food, furniture, textiles, leather and rubber, some of which are already facing US orders because of the new tariff.
Prior to the publication of the decree, Abiquim had stated last week that the sector was already facing cancellations of Trump’s tariff threat contracts.
