Trump tariff surge disrupts Brazil–U.S. trade logistics

Just days before a 50% U.S. tariff on Brazilian goods is set to take effect, cargo logistics between the two countries have been thrown into disarray. Exporters that can use air freight are rushing to ship goods before the August 1 deadline, while companies reliant on maritime transport are hitting pause, leaving port terminals congested.

The scramble for air freight has clogged Guarulhos International Airport in São Paulo. According to Luigi Rosolen, director of São Paulo-based logistics company West Cargo, the firm has encountered crowded platforms at Brazil’s largest cargo terminal.

“Exporters are pushing shipments forward to avoid the tariff hike. With air freight, there’s still time to reach the U.S. before August 1. But plane capacity is filling up quickly, and cargo isn’t moving at the usual speed,” said Rosolen.

Airport operator GRU Airport reported a “significant increase” in exports and booking requests for U.S.-bound shipments—especially shoes, fruit, cement, automotive parts, and agricultural machinery components.

GRU Airport has advised clients to confirm their flight reservations with the airlines before sending cargo to the airport to avoid potential backlogs.

With Guarulhos backed up, some West Cargo clients are diverting freight to other airports, such as Salgado Filho International Airport in Porto Alegre and Galeão International Airport in Rio de Janeiro, Rosolen said.

“In the coming days, we expect outbound demand to exceed aircraft capacity. One option is to reroute shipments through airports with lower export volumes and available space,” he added.

According to Fraport Brasil, which operates Salgado Filho, the Porto Alegre terminal saw a 58% spike in U.S.-bound export demand over the past two weeks. In Campinas, the Viracopos airport operator stated that a 48-tonne shipment of agricultural machinery parts, originally scheduled to depart via the Port of Santos, was redirected to the airport.

“These goods were set to ship by sea, but the company chose to expedite and switch to air freight,” the terminal noted.

On the maritime front, however, a different trend is unfolding. With not enough time for vessels to reach U.S. ports before August 1, companies are suspending shipments.

“Firms have hit the brakes. Shipments already en route are moving, but everything else is stuck in port and warehouse terminals or held at the factories,” said Dagnor Schneider, president of Santa Catarina’s freight transport and logistics federation (Fetrancesc) and of Concórdia Empreendimentos.

Deep Logística’s port warehouses, part of the Concórdia group, are now full of wood products that are on hold. Wood accounts for 8% of Santa Catarina’s exports to the U.S., Schneider said.

On the Espírito Santo coast, Vports—the operator of the Port of Capuaba in Vila Velha—reported that a container vessel scheduled for next week was canceled due to lower demand. According to Brazil’s container terminal association (Abratec), over 80% of coffee and meat shipments scheduled for this week and next to the U.S. have been canceled.

Luiz Alberto Teixeira, president of Espírito Santo’s cargo and logistics transport union (Transcares), said that in recent weeks, exporters tried to fast-track some already-contracted goods to beat the tariff deadline, while others are postponing shipments.

In Rio, similar cancellations were reported by the local cargo transport union (Sindicarga RJ). Paraná has seen the same trend.

“We’ve heard of exporters moving up shipments originally planned for August and of factories halting production due to uncertainty,” said Silvio Kasnodzei, president of Paraná’s cargo transport union (Setcepar).

Fausto Varela, head of Minas Gerais’s pig iron industry union (Sindifer), said shipments of pig iron—used to produce steel and cast iron—have been suspended. With fears of furnace shutdowns and layoffs, there is growing concern that U.S. buyers might permanently replace Brazilian suppliers.

“Pig iron exports from Minas Gerais totaled $1.2 billion in 2024. Everything was on track to match that this year, but now we’re very worried,” he said.

Tales Machado, president of Brazil’s natural stone exporters association (Centrorochas), said around 1,200 containers—worth $40 million—have not been shipped to the U.S.

“Shipments were suspended, not canceled. Buyers don’t want the goods redirected to other markets, so we’re hopeful the U.S. government might still delay the tariff implementation,” he said.

In 2024, 56% of Brazil’s natural stone exports went to the U.S. Machado added that U.S. industry groups have stepped in to support Brazilian exporters. The Natural Stone Institute (NSI) and the National Association of Home Builders (NAHB) have already launched lobbying efforts to persuade the Trump administration to reconsider the tariff hike.

Source: O Globo

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