Brazil’s exports to U.S. fall 18.5% in August as trade surplus grows

Brazil’s trade balance posted a surplus of US$6.133 billion in August, the first month the 50% surcharge imposed by the United States on various Brazilian products was in effect. The increase was 3.9% compared with August last year. Exports to the U.S., however, plunged 18.5% last month, the Ministry of Development, Industry, Trade and Services (MDIC) reported today.

What happened
Brazilian exports totaled US$29.8 billion in August, up from US$28.7 billion in August last year. The result was driven by the agribusiness and extractive industries. “Beef exports stood out, rising 56% in value, and gold increased 55.9% in value, with volumes also growing,” said Herlon Brandão, MDIC’s director of foreign trade statistics and studies.

Imports reached US$23.7 billion in August, down 2% compared with August 2024 (US$24.2 billion). Highlights included capital goods, down 10.1% in value, and consumer goods (–9%).

Year-to-date, Brazil has exported US$227.5 billion, a 0.5% increase compared with the first eight months of 2024.

Imports totaled US$184.7 billion from January to August, up 6.9% from US$172.9 billion in the same period last year. The resulting surplus in the first eight months of the year was US$42.8 billion.

Brazil’s total trade flow (exports plus imports) reached US$412.3 billion in the period. “The increase in exports was more than enough to offset the drop in imports and ensure that total trade grew in August, with a 1.2% increase,” Brandão said.

Exports to the U.S. fall
Brazilian exports to the U.S. fell 18.5% to US$4 billion in August. A year earlier, Brazil had exported US$4.4 billion to the U.S.

Products with the sharpest declines in exports to the U.S. included:

• Iron ore: –100%. “We did not export iron ore to the U.S. in August,” said Brandão.
• Sugar: –88.4%
• Aircraft and aircraft parts: –84.9%
• Non-electric engines and machinery: –60.9%
• Fresh beef: –46.2%
• Electrical machinery: –45.6%
• Rough (partially processed) wood: –39.9%
• Fuel oils: –37%
• Semi-finished iron and steel products: –23.4%
• Pulp: –22.7%

Meanwhile, imports from the U.S. rose 4.6% to US$3.9 billion in August, up from US$3.8 billion a year earlier.

Other markets
Brazil also exported less to Canada and the European Union. Shipments to the EU fell 11.9% (from US$4.5 billion to US$4 billion), while sales to Canada dropped 10.7% (from US$546 million in August 2024 to US$487 million in August 2025).

Exports to Mexico, however, jumped 43.8%. Shipments reached US$790 million in August, up from US$549 million a year earlier.

The group comprising China, Hong Kong, and Macau was the top destination for Brazilian products in August. Exports rose 29.9%, from US$7.3 billion to US$9.5 billion, accounting for 32.1% of total exports that month.

Products most exported to China, Hong Kong, and Macau included:

• Beef: +84%
• Oil and petroleum products: +75%
• Soybeans: +28.4%
• Sugar and molasses: +20%
• Iron ore: +4.9%

“Exports to China had been declining earlier this year mainly due to prices, but in August we saw a strong rebound in volumes,” Brandão said.

The 50% surcharge has been in effect since August 6. On that date, the U.S. raised tariffs by an additional 40% on top of the 10% already applied since April on Brazilian imports. The new 50% tariff applies to products such as coffee, meat, fish, sugar, cocoa, and tropical fruits like mangoes and grapes. Cashews, orange juice, and civil aviation products were among nearly 700 items spared from the surcharge.

The reasons for the tariff hike are political. Trump imposed the additional 40% tariff on Brazil “to address recent policies, practices, and actions by the Brazilian government that constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States,” according to his executive order.

The document cited Supreme Federal Court (STF) Justice Alexandre de Moraes and former president Jair Bolsonaro (PL). The White House described the case against Bolsonaro as “persecution, intimidation, harassment, and censorship.” “Moraes has abused his judicial authority to threaten, target, and intimidate thousands of his political opponents,” the statement said.

The U.S. also cited Brazilian court decisions against big tech companies, accusing the country of taking “unprecedented measures to tyrannically and arbitrarily coerce American companies” with the aim of “censoring political speech, removing users, and altering content moderation policies under threat of extraordinary fines and criminal proceedings.”

Source: UOL

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