Trump’s Tariff Hits Espírito Santo: Exports Plunge 34% in April

Brazil’s Espírito Santo state saw its international exports nosedive in April 2025—the first month under U.S. President Donald Trump’s steep new tariff policy. According to data from Comex Stat, total exports from the state reached US$ 636 million, down 34.7% compared to April 2024 (US$ 974 million). The drop was also sharp compared to March 2025, when exports totaled US$ 880 million, marking a 27.7% monthly decline.

The most significant losses came from the iron and steel sector. In April 2024, Espírito Santo exported roughly R$183.7 million worth of cast iron, iron, and steel. This figure dropped to just R$77.4 million in April 2025—a 57.9% reduction.

Experts cite multiple causes. Economist Renata Oliveira points to increased global supply, prompting countries to diversify suppliers. “The U.S. is a major consumer of iron and steel. When their demand drops, the market becomes more competitive, and other countries can step in,” she explains.

Institutional relations specialist Daniel Carvalho highlights the effect of purchase anticipation. “Knowing tariffs were coming, American buyers accelerated purchases in March,” which temporarily inflated that month’s figures. He expects a shift to a “new normal” in the coming months.

The Espírito Santo State Industry Federation (Findes) urges caution in attributing the April slump solely to the tariffs. “Many of the shipments exported in April were contracted before the new tariffs came into effect,” notes Carolina Ferreira of the Findes Observatory. She also suggests that some cargo may have been logistically shifted to March, further skewing monthly data.

The joint statement by the State Commerce Federation (Fecomércio-ES) and the Foreign Trade Syndicate (Sindiex) warned that the U.S. measure threatens the competitiveness of Espírito Santo’s exports and could affect the state’s trade balance.

Background on the Tariff

The U.S. tariffs—dubbed the “tarifaço”—were announced on April 2 and took effect on April 5, 2025. They target a wide range of imports as part of Trump’s “America First” policy to reindustrialize the U.S. The move has triggered retaliatory measures worldwide and stirred uncertainty in global markets.

Source: Tribuna Online

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