U.S. tariffs could cost Brazilian tobacco exports $100 million

Brazilian tobacco exports could lose roughly $100 million in sales if the United States keeps the product subject to the additional tariff imposed on Brazilian goods, industry groups warned.

The estimate was included in a letter sent by the Interstate Tobacco Industry Union, SindiTabaco, and the Brazilian Tobacco Industry Association, Abifumo, to the Ministry of Development, Industry, Trade and Services. The organizations are urging the Brazilian government to negotiate the inclusion of tobacco on the U.S. tariff exemption list.

Brazilian tobacco loses ground in the U.S.

The United States was traditionally the third-largest destination for Brazilian tobacco, accounting for around 9% of the industry’s exports. That share fell to 6% in 2025.

Datamar data shows that 1,426 TEUs of tobacco were shipped from Brazilian ports to the United States in the first five months of 2026, down 13.2%. The chart below compares export volumes recorded in recent years:

Tobacco Exports to the United States | Jan 2023 – May 2026 | TEUs

Source: DataLiner (click here to request a demo)

Data from the ministry and Brazil’s Secretariat of Foreign Trade, cited by the industry groups, show that tobacco exports to the United States totaled $195.3 million last year, down 23.4% from 2024.

The decline continued in 2026. Shipments reached $88.8 million between January and June, 31% below the same period last year.

Industry representatives said keeping the tariff in place could deepen the downturn and jeopardize existing commercial contracts.

African suppliers could replace Brazilian tobacco

Higher import costs could encourage U.S. companies to source tobacco from other markets. Zimbabwe and Malawi were cited among Brazil’s main competitors, as both countries produce tobacco for international markets.

The risk is particularly significant for growers of Burley tobacco, a variety for which the United States is one of the most important destinations.

According to the industry, replacing Brazilian tobacco would not only reduce sales in the short term. New contracts between U.S. buyers and foreign suppliers could also make it harder for Brazil to regain market share in the future.

Industry questions exclusion from tariff exemptions

SindiTabaco and Abifumo said several major Brazilian agricultural products were granted exemptions under the latest U.S. trade measures.

The list includes beef, coffee, oranges, organic honey, nuts and pulp. Tobacco, however, remains subject to the additional duty.

The industry groups argue that the different treatment weakens the competitiveness of Brazilian tobacco and benefits foreign suppliers able to reach the U.S. market at a lower cost.

Sector looks to government negotiations

The industry is hoping the Brazilian government will use diplomatic and trade channels to seek the removal of tobacco from the list of tariffed products.

An exemption could preserve part of Brazil’s sales to the United States and reduce the risk of losing market share to African producers.

Until the rules change, the entire tobacco supply chain will remain exposed to weaker overseas demand, including processing companies, exporters and growers, particularly in regions where tobacco production plays a major economic role.

Source: Compre Rural

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