Brazil’s food exports down in August after US tariffs
The Brazilian Food Industry Association (ABIA) reported a USD 300 million drop in processed food exports in August – down 4.8 percent from July. The external market accounts for 28 percent of the sector’s revenue.
Exports stood at USD 5.9 billion in August. Of this, USD 332.7 million went to the US – down 27.7 percent from July and 19.9 percent from August 2024.
The result reflects the 50-percent tariffs imposed by the US on Brazilian products and the bringing forward of shipments in July before the surcharge came into effect.
In July, the US had imported USD 460.1 million in processed foods from Brazil.
Comparing August with July, the products most affected for the US were sugars (-69.5%), animal proteins (-45.8%), and food preparations (-37.5%).
“Export performance in the last two months shows a clear shift – July’s significant growth was followed by an adjustment in August, especially in the US with the new tariff, whereas China reinforced its role as an anchor market,” João Dornellas, the association’s executive president, said in a statement. The decline observed in August, he argued, shows that the country needs to diversify its trading partners and expand its negotiating capacity.
The decline in the US market coincided with a substantial increase in sales to Mexico, which purchased USD 221.15 million (3.8 percent of the total), mainly animal proteins.
“The advance of Mexico, which coincides with the decline in sales to the US, indicates a possible redirection of flows and the opening of new trade routes – a movement that still requires monitoring to identify whether it will be structural or merely circumstantial,” the note reads.
In total, Mexicans bought 43 percent more from Brazilian producers in August, making it the market that increased its share the most during the period.
The most significant impact should be felt year to date. According to the association, sales of food products affected by the tariff hike to the US market are estimated to fall by 80 percent from August to December, with a cumulative loss of USD 1.351 billion.
