Brazil exports to Argentina fall 18% as auto trade loses momentum

Brazil exports to Argentina fell 18.1% in June, highlighting a slowdown in bilateral trade at a time of growing diplomatic tension between Buenos Aires and Brasília.

According to data from Brazil’s Ministry of Development, Industry, Trade and Services, reported by Exame, Brazilian exports to Argentina totaled US$1.33 billion in June, down from US$1.6 billion in the same month of 2025.

Argentina’s share of total Brazilian exports also declined, falling from 5.6% in June 2025 to 3.7% in June 2026.

Despite the drop, Argentina remains Brazil’s main trading partner within Mercosur and its third-largest export market, behind China and the United States.

The slowdown comes as Argentina continues to adjust its economy under President Javier Milei’s reform agenda and as political tensions between the Argentine government and Brazilian President Luiz Inácio Lula da Silva have intensified.

So far, there are no official restrictions affecting trade between the two countries. However, the weaker export performance adds another layer of concern for companies operating across the Brazil-Argentina supply chain, particularly in manufacturing and automotive logistics.

In containerized trade, Argentina’s exports to Brazil rose 46.3% in the January-May period compared with the same period a year earlier. Imports from its Portuguese-speaking neighbor fell 17%. The chart below compares the monthly volumes recorded:

Exports vs. Imports with Brazil | DataLiner Argentina | Jan 2023 – May 2026 | TEUs

Source: DataLiner (click here to request a demo)

Automotive sector remains central to bilateral trade

The automotive industry continues to anchor trade between Brazil and Argentina. In June, Brazil exported US$223 million in passenger cars to Argentina, equivalent to 16.9% of total shipments to the country.

Brazil also exported US$105 million in vehicle parts and accessories, representing 7.9% of the total; US$57 million in vehicles for the transport of goods, or 4.3%; US$38 million in other road vehicles, or 2.9%; and US$34 million in electrical machinery and equipment, equivalent to 2.6%.

The data underscores the importance of Argentina for Brazil’s industrial exports. Vehicles, components and machinery remain central to the integrated production model that links factories, suppliers and logistics operators on both sides of the border.

Imports from Argentina rise

While Brazilian exports to Argentina declined, Brazil’s imports from its neighbor rose 3.8% in the period, supported mainly by commercial vehicles, passenger cars, wheat, crude oil and ethylene polymers.

The divergence points to an uneven performance in bilateral trade, with Brazil selling less to Argentina while still increasing purchases of key Argentine goods.

For trade and logistics operators, the figures are significant because Argentina-Brazil commerce depends heavily on predictable road, maritime and industrial supply chains. Any further deterioration in business confidence or diplomatic coordination could affect cargo flows, investment decisions and regional production planning.

The immediate impact remains commercial rather than regulatory. Still, the June data show that Brazil exports to Argentina are losing momentum in a relationship that remains critical for Mercosur manufacturing, automotive trade and regional logistics.

Source: ANSA Latina

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