U.S. tariffs erode competitiveness of Brazilian tobacco exports

Additional U.S. tariffs on Brazilian goods are making the country’s tobacco less competitive in the American market and are expected to weigh on the industry’s exports in 2026, according to the Interstate Tobacco Industry Union, known as SindiTabaco.

The group said the higher duties are affecting commercial contracts, industrial planning and growers’ incomes. The United States has historically accounted for around 9% of Brazil’s tobacco exports.

In addition to the tariffs, SindiTabaco said the industry is concerned about rising global tobacco supplies following Brazil’s record export performance in 2025, a trend that could intensify competition in international markets.

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)

“Against this backdrop, SindiTabaco expects exports to return to the average level of the past five years, at around $2.6 billion, significantly below the record of approximately $3.4 billion reached in 2025,” association President Valmor Thesing said.

Data from Brazil’s Ministry of Development, Industry, Trade and Services and its Secretariat of Foreign Trade, cited by the association, show that Brazilian tobacco exports to the United States totaled $195.3 million in 2025, down 23.4% from $255 million in 2024.

Shipments reached $88.8 million in the first half of 2026, a 31% decline from the same period a year earlier.

The United States remained one of the leading destinations for Brazilian tobacco in the first six months of 2026, alongside Belgium, China, Indonesia, Vietnam and Turkey.

Brazil’s overall tobacco exports fell 15.94% year on year in the first half of 2026 to 173,600 metric tons. Export revenue declined 21.42% to $1.07 billion.

Source: CNN Brasil

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