U.S. tariff threatens to slash Brazilian ceramic exports by 78%

The Brazilian ceramic tile sector is projecting a sharp drop in exports due to the 50% tariff imposed by the United States. The measure, which could take effect as early as this Friday (August 1), is causing concern among industry leaders, who are mobilizing associations and government agencies to mitigate the impact of U.S. trade policy.

“We will feel this impact within 2025, with a projected drop of 40%. But on an annualized basis, the effect reaches 78%,” said Sérgio Wuaden, chairman of the board of Anfacer (National Association of Manufacturers of Ceramic Tile).

In an interview with Real Time, from Times Brasil – Exclusive CNBC Licensee, Wuaden provided further details on the estimated impacts. According to him, in the second half of 2025 alone, exports are expected to fall by about 6 million square meters. If the tariff remains in place, the sector could lose up to 12 million square meters in annual exports.

The United States is the leading destination for Brazilian ceramic exports. The most in-demand products are small-format tiles, which, according to Wuaden, make it difficult to adapt to other markets. “There are no alternative markets with the same relevance in volume and product specifications,” he said.

See below the Brazilian ceramic exports to the United States via containers from 2022 to 2025, which will be directly impacted by the tariffs imposed by the U.S. government:

Brazilian Ceramic Exports to the United States | Jan – May 2022 to Jan – May 2025 | TEU

Source: DataLiner (Click here to request a demo)

Industry seeks support

The ceramic sector is in talks with the federal government and state governments. The goal is to secure emergency credit lines for manufacturers. Wuaden explained that Anfacer is negotiating with the states where factories are located to secure financial support. “We are looking for ways to encourage state governments to offer some form of compensation,” he said.

Asked whether the United States might reverse the measure, Wuaden was cautious. He said the association is still pushing for at least a postponement of the tariff, but admitted that such a possibility has lost traction in recent days. “We are increasingly working with the assumption that this is not going to happen for now.”

Political motives

The Anfacer chairman believes the U.S. measure is politically, not economically, motivated. According to him, the United States maintains a trade surplus with Brazil, as well as a surplus in the balance of payments. “It’s a political move, an attempt to project strength,” he said.

Wuaden compared Brazil’s situation to China’s, noting that China managed to postpone similar tariffs. In his view, Brazil has failed to establish an effective negotiation channel. “Countries that engage in negotiations tend to see better results than those that try to go toe-to-toe.”

Source: Times Brasil

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