Brazil’s Exports to U.S. Hit Record Highs Amid Looming Trump Tariffs

Brazil’s exports to the United States reached unprecedented levels in both value and volume last year. The American Chamber of Commerce for Brazil (Amcham) reported that Brazilian sales to the US totaled $40.3 billion, a 9.2% increase from 2023.

This growth outpaced Brazil’s overall exports, which declined by 0.8%. It also surpassed performance with other key partners, including the European Union, China, and Mercosur.

In terms of quantity, Brazil exported 40.7 million tons to the US, a growth rate nine times higher than Brazil’s global exports during the same period. The US maintained its position as Brazil’s second-largest trading partner, behind only China.

Brazilian imports from the US also grew, reaching $40.6 billion, a 6.9% increase compared to 2023. This resulted in a trade surplus of $253.3 million for the US, the smallest deficit for Brazil in the last decade.

Fabrizio Panzini, Amcham’s director of public policies and government relations, noted that Brazilian exports to the US grew across all sectors: manufacturing (5.8%), extractive (21.1%), and agriculture (36.9%).

Brazil’s Exports to U.S. Hit Record Highs Amid Looming Trump Tariffs. (Photo Internet reproduction)

These growth rates exceeded Brazil’s export performance to the rest of the world in each sector. Key export products included crude oil, which became the top-selling item with a 23.1% increase, and aircraft, with a 36.2% rise.

Brazilian Exports to the US

Beef exports also saw significant growth, increasing by 103.5% to reach $943 million. Industrial exports to the US hit a record $31.6 billion in 2024, solidifying the US as the primary destination for Brazilian industry.

This increase accounted for over a third of the total growth in Brazilian industrial exports worldwide. Despite these positive trends, uncertainty looms as President-elect Donald Trump prepares to take office.

Trump’s potential implementation of import tariffs could impact the bilateral trade relationship. While Brazil may not be a primary target like China, Trump might seek advantages for specific sectors, as seen with steel during his first term.

Amcham President Abrão Neto emphasized the importance of waiting for concrete details of US trade policy. He noted this was necessary before assessing its impact on international trade and Brazil specifically.

He expressed hope that any disagreements would be resolved through dialogue, negotiation, and diplomacy. This optimism stems from the mature and pragmatic economic relationship between the two countries.

The record-breaking performance of Brazilian exports to the US in 2024 sets a strong foundation for future economic cooperation. Both nations are anticipating potential changes in trade dynamics.