Brazilian exports to the U.S. face a significant contraction due to tariffs, impacting key sectors.
Trade flow between Brazil and the United States registered a notable 9.7% decline in the first eight months of the year, resulting in foreign sales valued at $24.1 billion.
This scenario, outlined by the Brazil–U.S. Trade Monitor, points to a loss of $2.6 billion compared to the same period last year, reaching the lowest level for the period since 2023.
The data highlights the impact of tariff surcharges imposed by the North American market.
This slowdown broadly affects Brazil’s main production chains. The manufacturing, extractive, and agricultural industries, pillars of national exports, observed a shrinkage in their shipments to the U.S.
This movement contrasts with the positive performance of these same sectors when directed to other global destinations, underscoring the specific impact of trade barriers.
The Burden of Tariffs and Sectoral Impact
Products facing surcharges ranging from 25% to 37.5% were particularly hit. Year-to-date, these goods showed a 29.1% drop in their exports, totaling a loss of $3.6 billion.
Conifer wood, unmanufactured tobacco, beef tallow, and granite stand out as some of the most affected examples of this policy.
The manufacturing industry, responsible for the vast majority (83.3%) of Brazilian shipments to the United States, felt the blow with a 4.9% contraction. This is the first time since 2020 that the sector has seen a decrease in its sales to the American market.
The extractive industry suffered an even more significant drop of 28.9%, followed by agriculture, with a retreat of 26.7%.
Deficit and the Search for Rebalancing
Bilateral trade flow is also declining, with Brazilian imports of U.S. goods falling 8.6%. This dynamic resulted in a trade deficit of $3.2 billion for Brazil, with the total trade movement between the two countries decreasing by $5.2 billion.
Despite the challenging scenario, the month of August brought a glimmer of optimism, with a 12.1% increase in exported value. This growth was driven by higher average prices for products such as beef, aircraft, and coffee.
However, it is important to note that the physical volume traded in the month fell by 17.3%.
Given this situation, Amcham Brasil reinforces the urgency of seeking negotiations aimed at reducing these trade barriers.
The organization emphasizes the importance of strengthening the exchange between the two economies, aiming for rebalancing and the resumption of sustainable growth for bilateral trade.
The future outlook lies in the capacity for dialogue and the flexibility of tariff policies to unlock the economic potential between Brazil and the United States.
