By Brazil Stock Guide – Brazil’s chemical exports to the US fell to about $1.8 billion from $2.2 billion as American tariffs began weighing on one of the country’s largest industrial sectors, according to the Brazilian Chemical Industry Association, known as Abiquim.
The roughly $400 million decline represents a contraction of about 18%. Abiquim Chief Executive Officer André Passos Cordeiro said companies are already feeling the effects of the first round of US trade restrictions.
“Our exports to the United States fell from about $2.2 billion to $1.8 billion,” Cordeiro said.
Abiquim also challenged an additional 12.5% US levy tied to allegations that Brazil imports goods from countries associated with forced labor. The association said it had already provided information about the industry’s compliance mechanisms during a Section 301 public consultation conducted by the Office of the US Trade Representative.
“At the time, the association presented information on the compliance mechanisms adopted by Brazil’s chemical sector and reaffirmed the industry’s commitment to high standards of governance, social responsibility and respect for human rights, arguing that any trade measures should be based on technical and objective criteria,” Abiquim said.
The group said there is no economic justification for applying the tariffs to Brazilian chemical products, pointing to a bilateral trade balance that strongly favors the US.
US companies exported about $11.5 billion of chemical products to Brazil in 2025 while importing slightly more than $2 billion, generating a surplus of more than $9 billion.
The American Chemistry Council, the main US industry association, has also raised concerns with the USTR. The group warned that broad tariffs on Brazilian goods could raise costs across the US economy, weaken supply chains and undermine Washington’s own efforts to revive domestic manufacturing.
Abiquim welcomed the Brazilian government’s provisional measure establishing the Brasil Soberano III support program for exporters affected by the new US duties. The initiative was introduced as companies faced an additional 25% levy under Section 301, on top of tariffs previously imposed under Section 232.
The association asked the government to classify the chemical industry among the sectors directly affected by the trade measures. That designation would allow companies to apply for credit lines included in the program.
“The government’s initiative represents an important instrument to mitigate the impact of the tariffs,” Cordeiro said. “It is now essential for the regulations to quickly clarify the procedures for accessing the credit lines, allowing the funds to reach companies without delay.”
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