More Exemptions Wanted for 40% Brazil Tariff
WASHINGTON – Last Friday, Brazilian and U.S. industries joined to voice their concerns over a 50% tariff on most Brazilian natural-stone products.
On August 1, representatives of the Brazilian natural stone sector, led by the Brazilian Natural Stone Association (Centrorochas), met at the Brazilian Embassy for the symbolic delivery of a letter to the National Association of Home Builders (NAHB) and the Natural Stone Institute (NSI).
The letter, jointly signed by the three entities, reinforces the request for including more Brazilian materials in the list of exemptions.
The goal of the letter is to engage the United States Trade Representative (USTR) in recognizing the importance of maintaining strong trade flows between Brazil and the United States, and avoiding negative repercussions on jobs, contracts, and investments on both sides.
President Donald Trump announced an additional 40% tariff on Brazilian goods, which would be added to the general 10% tariff being assessed on all articles coming through U.S. ports-of-entry. Those tariff become effective on Aug. 5
Last week, an executive order issued by the president included a long list of tariff exemptions that represent an estimated 40% of all Brazilian exports to the United States. Included in that list is Monumental or building nesoi as defined by the Harmonized Tariff Schedule of the United States.
That category includes quartzite, the main stone product exported from Brazil. Comprising about half of Brazil’s total natural-stone exports to this country, quartzite is used in construction and high-end finishes.
Although grateful for the exemption of one category of stone previously covered by the tariffs, the letter emphasizes the need to expand the exemption list to include other sectors such as granite, marble, limestone and slate.
Estimates indicate the cost of new homes in the U.S. could rise by $10,900 if those stones aren’t excluded from the tariff.
Fabio Cruz, vice president of Centrocochas, noted that there are no viable domestic substitutes for his country’s marble, granite and slate.
“Whether the stone comes from Brazil, Italy, Portugal, Greece, India, or many other countries, the natural stone industry is caught in the cross-fire of pollical discussions,” said Jim Hieb, CEO of NSI. “Please hear our voice and those of over 15,000 natural stone companies and over 200,000 employees in the United States, which will be hurt if no further adjustments are made.”
According to the NAHB, approximately 7% of all building materials now used in single- and multi-family residential construction originates outside the U.S.
That $10,900 increase in the cost of a new home comes on top of a 41.6% increase in the cost of construction materials in the five years since the pandemic. By comparison, the total inflation rate over that period is 21.9%.
