US tariffs cause 18.5% drop in Brazilian exports

American Chamber of Commerce Brazil Monitor Shows Slowdown in Bilateral Trade in August

Brazilian exports to the United States recorded their largest monthly drop of the year in August, an 18.5% drop compared to 2024, according to the Brazil-US Trade Monitor, prepared by the American Chamber of Commerce for Brazil (Amcham). The decline is directly linked to the Donald Trump administration's so-called tariff hike, which has been applying surcharges of up to 50% on about a third of Brazilian exports to the North American market since August 6.

According to the Amcham survey, products affected by the new tariffs fell 22.4% in the month. Despite the loss in the North American market, the accumulated total from January to August still shows 1.6% growth in Brazilian exports to the US, totaling US$26.6 billion, a record for the period. Imports, in turn, totaled US$30 billion, an 11.4% increase compared to 2024. After increases of over 18% in June and July, they grew only 4.6% in August.

Among the sectors most affected by the tariffs are petroleum fuel oils (-37%), pulp (-22.7%), and semi-finished iron and steel products (-23.4%). Segments such as beef (+93.4%), coffee (+33.0%), and aircraft (+11.2%) stood out in the year-to-date, showing resilience even in the face of the new scenario, according to the Amcham report.

In an interview with Rádio Gov's "Voz do Brasil" program, Tatiana Prazeres, Secretary of Foreign Trade at the Ministry of Development, Industry, Commerce, and Services (MDIC), highlighted the Brazilian economy's resilience. "There was an 18.5% drop in our sales to the United States, but this was more than offset by the growth in exports to China (up 30%), Argentina (up 40%), and Mexico (up 43%). In other words, Brazilian exports proved to be very resilient, managing to reach other markets and maintain a positive trade balance," she stated.

The Amcham report also highlights the indirect effect of tariffs on Brazilian production chains. Products imported from the US and used by domestic industry, such as coal and aircraft parts, have seen a slowdown in the growth rate of purchases. "The sharp slowdown in the pace of Brazilian imports from the US signals an indirect effect of the tariffs, reflecting the high degree of integration and intra-firm trade between the two largest economies in the Americas," assessed Abrão Neto, president of Amcham.

Another highlight is the US trade surplus with Brazil, which reached US$3.4 billion between January and August, a 355% increase compared to the same period in 2024. While the United States has accumulated a deficit of more than US$800 billion in global trade, Brazil is among the few partners with a positive balance for Washington.

According to the MDIC secretary, the Brazilian government has been working to reduce the effects of the tariff hike, simultaneously negotiating the expansion of trade agreements. "Several negotiations are intensifying in light of these difficulties in accessing the American market," said Tatiana, citing the progress of negotiations such as the Mercosur-European Union, Mercosur-EFTA, and the partnership with Mexico. "Our commitment is to expand opportunities and diversify destinations, ensuring a place for Brazilian products in international trade," she concluded.