Brazil’s leather sector rushes exports to U.S. ahead of new 50% tariffs

Brazil’s leather industry has ramped up air shipments to the United States over the past week in an effort to deliver products before the new 50% tariffs imposed by Donald Trump take effect. Tanneries report a halt in negotiations with U.S. importers for sales that typically yield USD 200 million annually.

Below is a historical overview of Brazilian leather exports to the U.S. starting from January 2022. The chart was created using DataLiner data:

Brazilian Leather Exports to the U.S. | Jan 2022 to May 2025 | TEU

Source: DataLiner (Click here to request a demo)

José Fernando Bello, executive president of the Centre for the Brazilian Tanning Industry (CICB), told Valor that the sector is concerned about the impact of the tariff hike and is being hit on two fronts. The footwear industry, also targeted by the new U.S. tariffs, has begun cutting purchases from tanneries due to market uncertainty.

“It’s very difficult for us. The United States is our second-largest client. They buy high-value leather for the fashion and automotive industries. It’s a market that took us a long time to win over, with strict technical and quality standards, and we don’t want to lose it. We will do everything we can to hold onto them,” he said after attending a meeting with government ministers to discuss support measures for exporters facing the tariff increase.

“It’s USD 200 million a year. Besides losing part of that revenue, we also lose sales to domestic clients like the footwear industry, which is itself on the verge of losing exports to the U.S. So we lose twice, which is quite dramatic,” he added.

According to Bello, Brazilian tanneries have reported that U.S. importers are no longer renewing orders due to the looming implementation of the tariffs. However, he did not provide an estimate of the potential financial losses if the Brazilian government fails to negotiate the sector’s inclusion in the exemption list or reduce the U.S. tariffs.

“Some tanneries have shipped a large volume of goods by air in order to meet delivery deadlines, stock up with clients, and buy time for the governments to come to an agreement,” he said.

At a meeting held Monday (Aug. 4) between government ministers and representatives of export sectors in Brasília, Bello reiterated the industry’s call for the government to negotiate with the U.S. for either the elimination of the tariffs or, at a minimum, a rollback to the previous 10% rate—considered “acceptable” by the market.

“If possible, we want them eliminated. We’ve also requested support for companies not included in any tariff reduction, such as subsidized credit lines, faster reimbursement of PIS/Cofins and state ICMS export tax credits, and the creation of an unemployment support mechanism similar to what was implemented during the pandemic,” he said.

Each sector represented at Monday’s meeting is expected to submit formal requests to the government in the coming days. “The government listened, took notes, and asked each sector to submit formal documentation outlining the support needed and identifying potential markets where the government could help boost exports to offset the loss of U.S. sales,” Bello concluded.

Source: Globo Rural

Sharing is caring!