High Tariffs in the U.S. Reduce Brazil's Exports, While Sales to China Surge

High Tariffs in the U.S. Reduce Brazil’s Exports, While Sales to China Surge

Written by Sara Aquino

Published on 04/09/2025 at 22:53

Foto: IA

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With 50% Tariff in the USA, Brazil’s Exports Drop 18% in August, while Sales to China and Mexico Soar, Boosting the Trade Balance.

Brazilian exports to the United States fell by 18.5% in August, directly impacted by the 50% tariff announced by Donald Trump’s government, which went into effect on August 6, 2025.

This information was released this Thursday (04/09/2025) by the Secretariat of Foreign Trade of MDIC (Ministry of Development, Industry, Trade and Services).

The impact of the so-called “tariff hike” was felt in several strategic sectors, including iron ore, sugar, aircraft, and fresh beef.

ARTICLE CONTINUES BELOW

Main Products Affected by the Tariff Hike

Among the products that recorded the largest declines are:

Iron Ore: -100%;

Sugars: -88.4%;

Aircraft: -84.9%;

Fresh Beef: -46.2%;

Fuel Oils: -37%;

Semi-finished Iron or Steel Products: -23.4%.

It is worth noting that some categories, such as aircraft, oil, and iron ore, were not affected by the 50% surcharge, yet still recorded reductions due to the anticipation of shipments before the tariff implementation.

China and Mexico as Market Alternatives

Meanwhile, Brazil’s exports to other destinations are growing significantly. China, the country’s main trading partner, recorded a 29.9% increase in August, establishing itself as a strategic alternative to the American market.

Mexico also significantly increased its purchases, with a growth of 43.8% in the same period.

This movement shows that the country is seeking to diversify destinations and reduce dependence on the US market in light of tariff barriers.

Brazilian Trade Balance Maintains Surplus

Despite the drop in sales to the USA, the Brazilian trade balance recorded a surplus of US$ 6.133 billion in August 2025, representing a growth of 35.8% compared to the same month last year, when the balance was US$ 4.5 billion.

The result is a consequence of the difference between exports and imports. Exports totaled US$ 29.861 billion, while imports amounted to US$ 23.728 billion, generating a trade flow of US$ 53.589 billion for the month.

Impact of Tariffs on the Brazilian Economy

Experts warn that the impact of the 50% tariff in the USA goes beyond the statistics of August. “The tariff hike alters the planning of exporting companies, which need to seek alternative markets and adapt production to maintain competitiveness,” states an economic analyst.

Furthermore, the movement highlights the strategic importance of China and other partners, such as Mexico, for the diversification of Brazil’s exports and the stability of the trade balance amid tariff tensions with the United States.

High Tariffs in the U.S. Reduce Brazil’s Exports, While Sales to China Surge

With 50% Tariff in the USA, Brazil’s Exports Drop 18% in August, while Sales to China and Mexico Soar, Boosting the Trade Balance.

Main Products Affected by the Tariff Hike

China and Mexico as Market Alternatives

Brazilian Trade Balance Maintains Surplus

Impact of Tariffs on the Brazilian Economy

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High Tariffs in the U.S. Reduce Brazil’s Exports, While Sales to China Surge

With 50% Tariff in the USA, Brazil’s Exports Drop 18% in August, while Sales to China and Mexico Soar, Boosting the Trade Balance.

Main Products Affected by the Tariff Hike

China and Mexico as Market Alternatives

Brazilian Trade Balance Maintains Surplus

Impact of Tariffs on the Brazilian Economy

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