Brazilian exports to the U.S. fell 12.2% during the first seven months of 2026 [1].
The decline marks the lowest trade volume for this period in three years. This downturn signals a cooling of bilateral trade relations as protective trade policies impact the competitiveness of South American goods in the North American market.
From January to July, the value of Brazilian exports to the U.S. totaled US$ 21 billion [1]. During the same period, the value of imports from the U.S. to Brazil reached US$ 23.2 billion [3].
This shift has widened the trade gap between the two nations. The bilateral trade deficit rose 122.3% year-on-year to US$ 2.3 billion [3].
Analysts said increased U.S. tariffs on Brazilian products are the primary driver of the slump. These tariffs have specifically targeted timber and other commodities, reducing the ability of Brazilian firms to compete on price.
The impact is most visible in the forestry sector. Exports of coniferous wood fell 31.5% year-on-year [5].
While trade with the U.S. has contracted, Brazil's broader commercial landscape shows a different trend. Some reports said that while U.S. trade fell, commerce with the rest of the world advanced 10.5% [2].
“Brazilian exports to the United States fell 12.2% during the first seven months of 2026”
The sharp decline in exports, particularly in the timber sector, suggests that U.S. tariff hikes are effectively decoupling specific supply chains. By increasing the cost of Brazilian imports, the U.S. is incentivizing domestic production or seeking alternative trading partners. For Brazil, the widening trade deficit and the drop in U.S. market share may accelerate a strategic pivot toward other global markets to offset the loss of North American revenue.
