Brazil imposes provisional antidumping duties on US, Canadian PE imports

Brazil’s foreign trade council, Gecex/Camex, has introduced provisional antidumping duties on PE imports from the United States and Canada, acting on a recommendation from the Secretariat of Foreign Commerce. 

The duties, set at $199.04/ton for US-origin cargoes and $238.49/ton for Canadian-origin material, take immediate effect and will remain in place for up to six months. A full investigation by the Department of Trade Defence (Decom) is scheduled to conclude by 2 February 2026.

The decision marks another step in Brazil’s more protectionist trade stance, following the increase in general polymer import tariffs from 12.6% to 20% in October 2024. Market reaction has been divided. Critics argue the measure disproportionately benefits local producer - Braskem by strengthening its short-term financial position, while advocates maintain that it helps level the playing field for domestic buyers outside the Manaus Free Trade Zone, where US-origin resin enjoys tax exemptions.

Brazil ranks as the third-largest importer of US PE after China and Mexico. Of the 14.5 million tons the US exported in 2024, some 1.5 million tons — around 10% — were shipped to Brazil, covering 72% of Brazil’s total PE import requirements. The new duties are therefore expected to unsettle Brazil’s supply balance, given the market’s heavy reliance on US-origin resin.

At the same time, the steep levies will strip US and Canadian cargoes of their competitiveness in Brazil, potentially forcing exporters to divert volumes to alternative markets. In recent weeks, buyers in Southeast Asia have already reported increased availability of US-origin material — a trend that could intensify as suppliers seek to mitigate the impact of Brazil’s trade restrictions.

Written: Farid Muzaffar