Latest news with #Abiquim
Indian Express
4 days ago
- Business
- Indian Express
Trump's 50% tariff threat hits Brazilian chemical exports as US orders cancelled
Brazilian chemical exporters are seeing contracts cancelled after US President Donald Trump announced plans to impose a 50% tariff on Brazilian goods starting 1 August, Reuters reported. Brazil exported about $2.4 billion worth of chemical products to the United States last year. Since the tariff threat, orders for some products including resins and compounds used to make fertilisers have been cancelled, said Andre Cordeiro, head of Brazilian chemical industry group Abiquim. 'These decisions are being made because people believe he will actually go ahead with the tariff,' Cordeiro told Reuters on Friday. He said one company had all of its US export contracts cancelled, while others lost parts of their orders. In some cases, exporters had already arranged financing before the cancellations. Cordeiro did not name the affected companies. The impact is not limited to direct chemical exports. 'No one produces coffee, even grains, without some kind of chemical product in the process,' he said. According to Cordeiro, chemical firms are also losing domestic sales to Brazilian companies that export to the US. He cited plywood manufacturers, who use chemicals for bonding and have also lost orders, and orange juice producers, who rely on chemical preservatives. Last year, 42% of Brazil's orange juice exports went to the US. Large firms such as Braskem and Dow Chemical may also be affected. Braskem has operations in the US, while Dow, which runs 10 plants in Brazil, exports silicon metal to the American market. Neither company commented when contacted by Reuters. Exxon Mobil, which also operates in Brazil, declined to comment. Abiquim says the tariffs are unjustified, pointing out that Brazil's chemical sector runs a $7.9 billion trade deficit with the United States.
Yahoo
4 days ago
- Business
- Yahoo
Trump tariffs weigh on Brazil chemical exporters, spark order cancellations
By Ana Mano SAO PAULO (Reuters) -Chemical products companies in Brazil, which exported $2.4 billion to the U.S. last year, face a slew of contract cancellations as President Donald Trump has threatened a new 50% tariff on the South American nation's exports from August 1. Since Trump's announcement, export orders have been canceled for certain resins and compounds used to make fertilizers, which Brazil supplies to the U.S. agriculture sector, Andre Cordeiro, head of Brazilian chemical lobby Abiquim, said on Friday. "Fundamentally, these decisions are being made because the bet is that he will actually apply the tariff," Cordeiro said. One company in Brazil had all its contracts for exports to the U.S. canceled, Cordeiro said, adding that other businesses have seen some of their contracts canceled. There are also cases where sellers had secured export financing for the order, which was later revoked. He declined to name the affected exporters. Losses associated with the tariffs go beyond direct exports, as almost every industry uses chemicals in manufacturing processes, from oil to steel, from machinery to production of agricultural commodities, he said. "No one produces coffee, even grains, without some kind of chemical product in the process." Cordeiro added that chemical companies are losing export business and also local sales to clients that export goods into the U.S. market. Brazilian plywood exporters, for example, use chemicals for bonding and themselves have faced U.S. order cancellations, he said. Orange juice makers, which sent 42% of their exports to the U.S. last year, also use chemical preservatives. Brazilian companies like Braskem have operations in the U.S. and could be affected. Dow Chemical, which has 10 plants in Brazil and sizeable exports of silicon metal for processing in the U.S., is also at risk. Braskem and Dow did not immediately comment. Exxon Mobil, which declined to comment, operates in Brazil and serves clients in various industries. Tariffs are unjustified because Brazil's chemical sector runs a $7.9 billion trade deficit with the U.S., Abiquim said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Trump tariffs weigh on Brazil chemical exporters, spark order cancellations
By Ana Mano SAO PAULO (Reuters) -Chemical products companies in Brazil, which exported $2.4 billion to the U.S. last year, face a slew of contract cancellations as President Donald Trump has threatened a new 50% tariff on the South American nation's exports from August 1. Since Trump's announcement, export orders have been canceled for certain resins and compounds used to make fertilizers, which Brazil supplies to the U.S. agriculture sector, Andre Cordeiro, head of Brazilian chemical lobby Abiquim, said on Friday. "Fundamentally, these decisions are being made because the bet is that he will actually apply the tariff," Cordeiro said. One company in Brazil had all its contracts for exports to the U.S. canceled, Cordeiro said, adding that other businesses have seen some of their contracts canceled. There are also cases where sellers had secured export financing for the order, which was later revoked. He declined to name the affected exporters. Losses associated with the tariffs go beyond direct exports, as almost every industry uses chemicals in manufacturing processes, from oil to steel, from machinery to production of agricultural commodities, he said. "No one produces coffee, even grains, without some kind of chemical product in the process." Cordeiro added that chemical companies are losing export business and also local sales to clients that export goods into the U.S. market. Brazilian plywood exporters, for example, use chemicals for bonding and themselves have faced U.S. order cancellations, he said. Orange juice makers, which sent 42% of their exports to the U.S. last year, also use chemical preservatives. Brazilian companies like Braskem have operations in the U.S. and could be affected. Dow Chemical, which has 10 plants in Brazil and sizeable exports of silicon metal for processing in the U.S., is also at risk. Braskem and Dow did not immediately comment. Exxon Mobil, which declined to comment, operates in Brazil and serves clients in various industries. Tariffs are unjustified because Brazil's chemical sector runs a $7.9 billion trade deficit with the U.S., Abiquim said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Trump tariffs weigh on Brazil chemical exporters, spark order cancellations
SAO PAULO, July 25 (Reuters) - Chemical products companies in Brazil, which exported $2.4 billion to the U.S. last year, face a slew of contract cancellations as President Donald Trump has threatened a new 50% tariff on the South American nation's exports from August 1. Since Trump's announcement, export orders have been canceled for certain resins and compounds used to make fertilizers, which Brazil supplies to the U.S. agriculture sector, Andre Cordeiro, head of Brazilian chemical lobby Abiquim, said on Friday. "Fundamentally, these decisions are being made because the bet is that he will actually apply the tariff," Cordeiro said. One company in Brazil had all its contracts for exports to the U.S. canceled, Cordeiro said, adding that other businesses have seen some of their contracts canceled. There are also cases where sellers had secured export financing for the order, which was later revoked. He declined to name the affected exporters. Losses associated with the tariffs go beyond direct exports, as almost every industry uses chemicals in manufacturing processes, from oil to steel, from machinery to production of agricultural commodities, he said. "No one produces coffee, even grains, without some kind of chemical product in the process." Cordeiro added that chemical companies are losing export business and also local sales to clients that export goods into the U.S. market. Brazilian plywood exporters, for example, use chemicals for bonding and themselves have faced U.S. order cancellations, he said. Orange juice makers, which sent 42% of their exports to the U.S. last year, also use chemical preservatives. Brazilian companies like Braskem ( opens new tab have operations in the U.S. and could be affected. Dow Chemical (DOW.N), opens new tab, which has 10 plants in Brazil and sizeable exports of silicon metal for processing in the U.S., is also at risk. Braskem and Dow did not immediately comment. Exxon Mobil (XOM.N), opens new tab, which declined to comment, operates in Brazil and serves clients in various industries. Tariffs are unjustified because Brazil's chemical sector runs a $7.9 billion trade deficit with the U.S., Abiquim said.
