In the past two months, Brazil, which was buzzing over tariffs against China, announced the cancellation of anti-dumping duties on Chinese nylon long fibers in the third month. What is driving this sudden change behind the abrupt halt?

Once tariffs are implemented, reality quickly teaches a lesson to Brazilians. The retail market in São Paulo directly felt the impact—Gree air conditioners increased from 1,999 reais to 2,300, with sales plummeting. Textile companies faced a 15% increase in the cost of importing Chinese materials; despite raising prices by 10%, orders still dropped by 30%. In just three weeks, retail inventories nationwide surged by 40% year-on-year, and small and medium-sized enterprises collectively laid off staff to cope.

Economic data are very straightforward. Protective tariffs aimed to support domestic industries, but the result was that they couldn't sustain themselves. The cost of Chinese photovoltaic modules increased by 30% due to tariffs, stalling the transition to new energy; even union leaders have spoken out—if this continues, factories will be forced to close.

But the real pressure is even greater. Trump imposed a 50% tariff on steel and aluminum from Brazil, and in November alone, Brazil had $820 million worth of steel stuck unsold. Instead of continuing to make enemies in trade, it’s better to reassess the reality: in the first three quarters of 2025, China’s investment in Brazil reached $4.8 billion, three times that of the US during the same period. 42% of Brazil’s economy depends on the Chinese market, and 15% of Vale’s iron ore capacity is absorbed by China.

Looking at China’s performance, from January to November 2025, exports to Brazil grew by 18% against the trend. New energy vehicles hold a 65% market share in Brazil, and BYD electric buses have become a daily sight in Rio de Janeiro’s subway. The use of local currency for transactions between China and Brazil jumped from 5% to 30%, showing a clear de-dollarization trend. Huawei is building smart city systems in Brazil, reducing crime rates by 27% and lowering network fees by 25%—who can replace such cooperation?

What does Brazil’s policy reversal in the past 60 days tell us? In the era of globalization, no country can truly be self-sufficient. Attempting to protect domestic industries through tariff barriers ultimately harms its own consumers and businesses. Win-win cooperation is not just empty talk but the answer given by economic reality.