Brazilian exports hit record high in October, despite Trump’s tariffs
The diversification of exports to Asia and Europe offset the effects of US tariffs, three months after President Donald Trump’s government retaliated with trade measures. Brazil’s foreign sales grew 9.1 percent in October compared to the same month last year, breaking the record for the month since the beginning of the time series in 1989.
The growth occurred despite a sharp 37.9 percent drop in sales to the US. The figures were released Thursday (Nov. 6) by the Brazilian Ministry of Development, Industry, Trade, and Services.
According to the survey, exports totaled USD 31.97 billion last month, while imports reached USD 25.01 billion, resulting in a trade surplus of USD 6.96 billion.
The shrinkage in exports to the US, impacted by the tariffs implemented by the US government, led to a 24.1-percent fall in sales to North America. It was the only region with a reduction in exports in October.
The main factor in the decline in sales to North America was the 82.6-percent drop in oil shipments, equivalent to a loss of USD 500 million. Sales of cellulose (43.9%), fuel oils (37.7%), and aircraft and parts (19.8%) also declined.
“Even products that were not subject to tariffs – such as fuel oil and cellulose – suffered a decline,” said Herlon Brandão, the ministry’s director of statistics and foreign trade studies.
Other markets
The decline in exports to the US was offset by increased sales to other regions – especially Asia, which rose 21.2 percent, driven by China (33.4%), India (55.5%), Singapore (29.2%), and the Philippines (22.4%).
Among the products, the most notable increases were in exports of soybeans (64.5%), crude petroleum oils (43%), iron ore (31.7%), and beef (44.7%).
In Europe, sales grew 7.6 percent, with strong growth in copper ores (823.6%), beef (73.4%), and cellulose (46.8%). South America saw a 12.6-percent increase, driven by shipments of crude petroleum oils (141.1%).
According to Brandão, Brazilian exports to the US have been steadily declining over the last three months. The drop was 16.5 percent in August, 20.3 percent in September, and 37.9 percent in October.
“We have observed increasingly negative rates of change compared to the same month last year,” Brandão noted.
He also pointed out that the movement reflects not only the direct effects of tariffs but also a possible reduction in US demand.
“The main drop in absolute terms was in crude oil, which was not subject to tariffs. This indicates there are various effects influencing the decline in exports to the US,” he added.
