Food exports fall in August due to U.S. tariff hike

The balance released by the Brazilian Food Industry Association (ABIA) showed a US$300 million drop in processed food exports in August, equivalent to a 4.8% decline compared with July.

According to the survey, exports totaled US$5.9 billion in August. Of this amount, US$332.7 million went to the United States, representing a 27.7% decrease compared with July and a 19.9% drop compared with August 2024.

The result reflects the 50% tariff increase imposed by the United States on Brazilian products, in addition to shipments being anticipated in July ahead of the new tax.

In July, the U.S. had imported US$460.1 million in processed foods from Brazil.

The products most affected in sales to the U.S. were sugar (down 69.5% in August compared with July), animal proteins (-45.8%), and food preparations (-37.5%).

Check out below a history of Brazilian sugar exports to the United States from January to July 2022 to 2025. The chart was prepared with DataLiner data and excludes cabotage, transshipment, and domestic movements.

Brazilian Sugar Exports to the United States | Jan 2022 to Jul 2025 | WTMT

Source: DataLiner (Click here to request a demo)

“The performance of exports in the past two months shows a clear turning point: July’s sharp growth was followed by an adjustment in August, particularly in the U.S., impacted by the new tariff, while China reinforced its role as an anchor market,” said João Dornellas, ABIA’s executive president, in a statement. According to him, the August decline shows that Brazil needs to diversify its trading partners and strengthen its negotiation capacity.

The drop in U.S. sales coincided with a substantial increase in sales to Mexico, which purchased a total of US$221.15 million (3.8% of the total), mainly animal proteins.

“Mexico’s growth, which coincides with the decline in sales to the U.S., indicates a possible redirection of flows and the opening of new trade routes — a movement that still requires monitoring to determine whether it will be structural or merely temporary,” ABIA’s note explained.

Overall, Mexican purchases rose 43% in August, making Mexico the market with the largest increase in participation during the period.

The most significant impact is expected to be seen in year-end results. According to ABIA, sales of foods affected by the U.S. tariff are expected to fall 80% between August and December, with accumulated losses of US$1.351 billion.

China
China, the largest buyer of processed foods, purchased US$1.32 billion worth of products, a 10.9% increase compared with July and a 51% increase over August 2024. The Chinese share represented 22.4% of total exports in August 2025.

The external market accounts for 28% of the industry’s revenue.

Arab League countries, meanwhile, reduced purchases by 5.2% in August compared with July, totaling US$838.4 million. The European Union imported US$657 million in foods, down 14.8% from July and 24.6% compared with August 2024.

From January to July 2025, total exports reached US$36.44 billion, a 0.3% decrease compared with the same period in 2024, due to reduced sugar production during the offseason.

Orange juice
Exempt from the tariffs, the orange juice industry recorded growth of 6.8% in August compared with the same month in the previous year, but an 11% drop compared with July due to shipments being anticipated.

Jobs in the sector
In July, the food industry employed 2.114 million formal, direct workers. Between July 2024 and July 2025, 67,100 new jobs were created, representing 3.3% growth.

So far in 2025, 39,700 direct jobs have been added, along with another 159,000 created in the supply chain, in sectors such as agriculture, livestock, packaging, machinery, and equipment.

Source: Agência Brasil

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