Overview

• President Trump invoked IEEPA and Sections 232/301 to threaten a 50% levy on Brazilian imports from August 1, spurring U.S. buyers to withdraw purchase commitments for key chemicals
• Andre Cordeiro of Abiquim says exporters have lost contracts for resins and fertiliser compounds, with at least one firm seeing all its U.S. orders cancelled
• Downstream industries such as plywood manufacturing and orange juice production are now feeling pressure as they rely on Brazilian chemical inputs
• President Lula has branded the planned duties as political blackmail linked to Trump’s support for Bolsonaro, and Brazil’s counterproposal sent in May remains unanswered
• Facing escalating losses, major players including Braskem and Dow Chemical are exploring shifts in output to Mexico or India to safeguard supply chains