Brazil Posts Export Growth, Resisting Hit From US Tariffs
Shipments to US Fell 20.3% Year Over Year in September; Higher Coffee Prices Making Their Way to US
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Brazil’s overall exports grew last month as greater shipments to destinations like China and Argentina blunted the hit from 50% tariffs imposed by the U.S. government, according to data published Oct. 6.
Total exports reached $30.5 billion in September, up 7.2% from a year prior, a Brazil government report said. Shipments to the U.S. fell 20.3% from the same period in 2024, marking the second straight plunge. The declines highlight the economic impact of the ongoing standoff and duties that came into effect in August, even as both governments signal interest in a diplomatic off-ramp.
Brazil’s Luiz Inacio Lula da Silva asked Donald Trump to remove tariffs on the country’s goods and sanctions on top officials in a call earlier Oct. 6. The U.S. government has already carved out a swathe of exemptions covering some major exports, such as civilian aircraft and orange juice. Still, other key goods like coffee and beef weren’t exempted from levies and hence became much more expensive for consumers in the world’s largest economy.
In September, the items with the steepest export drops to the U.S. included pig iron, beef, sugar, weapons and tobacco, according to Brazilian government data.
“If the levies are maintained, exports to the U.S. will likely continue to fall in coming months,” said Herlon Brandao, the director of foreign trade statistics and studies at Brazil’s Trade Ministry. “It is a very large tariff barrier.”
The U.S. has been Brazil’s second-biggest trading partner since 2009 when China took the top spot amid a global commodity boom. The drag from tariffs aside, Latin America’s largest economy still posted a positive trade balance last month, with a surplus of nearly $3 billion.
Coffee
Meanwhile, the tariff-induced squeeze is making its way into U.S. households. The surge in prices for staple Brazilian commodities like coffee is now showing up in grocery aisles and morning routines.
Since July, Arabica futures have surged 27.1%, driven by concerns of drought in key producing regions and tighter U.S. access to Brazilian supply. Brazil accounts for over 37% of global coffee production.
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“In August, 300,000 fewer bags of coffee were shipped to the U.S. They had to be rerouted to Colombia, Mexico and Germany,” said Marcelo Moreira, a coffee specialist at Archer Consulting. “Markets are very nervous with this tariff mess. It’s scaring them.”
The U.S. government slapped tariffs on Brazil as part of a pressure campaign to get the country’s Supreme Court to drop coup charges against former President Jair Bolsonaro, who is an ally of Trump. Bolsonaro was later convicted and sentenced.
For now, Brazilian exporters are recalibrating. Some firms are exploring alternative markets in Asia and the Middle East, while others are lobbying for domestic relief measures, such as credits support or preferential financing from Brazil’s development bank, known as BNDES.
