Brazilian industry seeks temporary rollback of ADD on US, Canadian PE

Brazil’s newly confirmed antidumping duties (ADD) on PE imports from the US and Canada risk deepening strains in an already tight market, industry sources warn. Global resin markets remain volatile, with disruptions near the Strait of Hormuz fuelling feedstock shortages and elevating production costs.

Brazilian industry, represented by Abiplast, warned that the duties could further lift input costs for downstream manufacturers reliant on imports. In a market already grappling with shortages and elevated prices, the additional trade barriers are set to intensify and compound supply pressures.

Last week, Brazil’s Foreign Trade Chamber (Gecex) finalized antidumping tariffs of $199.04/ton on US PE and $238.49/ton on Canadian material, echoing provisional measures applied since August 2025. While these figures from remains steeply lower than February counter-proposals by trade authority Decom—which had assessed US PE dumping at $734.32/ton—their impact on trade flows was evident within just six months.

Brazil ranks as the world’s third-largest destination for US PE after Mexico and China. Of the nearly 16 million tons exported by the US in 2025, roughly 1.4 million tons, or 8%, went to Brazil, down from 10% in 2024. Provisional antidumping measures have already narrowed sourcing options and contributed to rising domestic prices, as CommoPlast previously reported.

The country’s protectionist stance had already intensified with a general hike in polymer import tariffs from 12.6% to 20% in October 2024. The latest antidumping measures add another layer of cost pressure as Middle East supply disruptions further tighten global availability.

With imports constrained, Brazilian downstream sectors, including food and beverage packaging, are confronting rising resin costs and limited material access. Some companies have begun passing higher PE prices through to consumers, signalling a wider economic ripple. Industry groups are pressing the government to reconsider or suspend the duties to ease supply pressures and preserve competitiveness.

Written by: Farid Muzaffar