Brazilian Exports to US Drop 14% in May Amid Tariff Tensions
Brazilian exports to the US declined 14% in May as trade tensions rise, while ethanol tariff disputes with the US persist amid growing exports to China.
- • Brazilian exports to the US fell 14% in May 2026 compared to May 2025 due to tariffs imposed since August 2025.
- • May 2026 trade deficit with the US was $121 million, with cumulative deficit $1.47 billion for January–May.
- • Chinese exports increased 9.5% in May, making China Brazil’s top export destination.
- • Brazilian ethanol groups disputed US claims, citing Mercosur tariffs and US sugar market protection.
- • Brazil posted a commercial surplus of $32.66 billion in first five months of 2026, boosted by energy and commodity exports.
Key details
Brazil's exports to the United States fell by 14% in May 2026 compared to the same month in 2025, continuing a decline triggered by tariffs imposed by the Trump administration since August 2025. According to the Ministry of Development, Industry, Commerce and Services (Mdic), May exports to the US totaled $3.09 billion, while imports from the US were $3.21 billion, resulting in a $121 million trade deficit for the month. From January to May, Brazilian exports to the US declined 16% to $14.01 billion, with imports down 12.6%, leading to a cumulative trade deficit of $1.47 billion. Despite this, overall Brazilian exports saw growth elsewhere, particularly to China, which increased by 9.5% in May to $10.5 billion, solidifying its position as Brazil's top export destination.
Herlon Brandão, director at Mdic, noted that while exports to the US are down, it is too early to say there is a permanent structural change, as commodities and food exports to the US tend to be less affected by such shocks.
In parallel, Brazilian ethanol industry entities, Unica and Bioenergia Brasil, responded to the US Trade Representative’s (USTR) allegations of restricted market access, explaining that Brazil’s ethanol tariff complies with Mercosur’s Common External Tariff and is not targeted solely at the US. They emphasized the longstanding US protection of its sugar market, which limits Brazilian sugar exports to less than 1% of total exports. The US is proposing a punitive 25% tariff on Brazilian imports, accusing Brazil of unfair trade practices. Unica and Bioenergia Brasil highlighted Brazil’s commitment to ethanol’s sustainability and called for dispute resolution through dialogue.
Additional factors contributing to Brazil's export surplus of $32.66 billion in the first five months of 2026 include increased oil exports due to Middle East conflict-driven price rises, despite a drop in crude oil volumes, and strong commodity sales to China. A new oil production platform that began operating in February 2026 supports Brazil’s competitiveness in the energy sector.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
