Brazilian authorities have imposed additional tariffs on a range of Chinese goods, including various steel products and optical fibers. The move is aimed at combating dumping practices and protecting domestic industries.
The Ministry of Industry, Foreign Trade and Services of Brazil (MDIC) announced these measures during a meeting of the Foreign Trade Executive Management Committee (Gecex) on Thursday (October 17).
According to reports from the South China Morning Post, the committee decided to impose tariffs on Chinese goods citing a significant increase in imports that have harmed domestic production. The tariffs include a 35% duty on optical fibers and cables, a 25% duty on several steel products, and an increase in the tariff on sodium chlorite from 9% to 10.8%, which is a compound used in pulp and paper processing.
Other Chinese products subjected to additional tariffs include metal foils, sprayers, titanium dioxide (used in paints, sunscreens, food coloring), and polyester fibers (mainly used in clothing production, as well as in making water pipes, belts, filter cloths, ropes, canvas tents, and tires).
The tariffs on steel products will be in effect until May 31, 2025, while tariffs on optical fibers, cables, and other products will last for six months.
The committee also implemented permanent anti-dumping measures on non-surgical gloves from China, Malaysia, and Thailand.
Although most tariffs seem to focus on Chinese goods, the Brazilian Ministry of Foreign Affairs stated that the tariffs are not directed at any specific country.
The Ministry of Foreign Affairs of Brazil said, “Additional tariffs are usually imposed to create a level playing field between imported products and similar domestic products, especially when a surge in imports harms domestic production.”
Last year, three multinational companies lodged complaints, prompting Brazilian authorities to investigate possible dumping and illegal subsidies on Chinese optical fibers and cables. Evidence suggested that Beijing had indeed intervened in the industry.
The Ministry of Industry, Foreign Trade and Services clarified that the new tariffs are separate from the investigation, which is ongoing and scheduled to conclude within 18 months.
Earlier this year in May, the Ministry had expanded anti-dumping restrictions on Chinese steel products. Authorities found that steel importers were trying to purchase products with slightly lower chromium and nickel content to circumvent previous restrictions, but these products were essentially the same as those targeted by the restrictive tariffs.
Brazilian steel producers stated that China’s dumping practices have made it difficult for Brazilian manufacturers to survive. They claimed that Chinese products had caused them to lose significant market share, resulting in 40% idle capacity, shrinking profits, and several rounds of job cuts implemented in 2024.