With exports of USD 34.1 billion and imports of USD 27.1 billion, Brazil recorded a trade surplus of just over USD 7 billion in July. The data were released on Thursday (Aug. 6) by the Ministry of Development, Industry, Trade, and Services.

Trade flow (the sum of exports and imports) totaled USD 61.17 billion during the period, representing a 6.8 percent increase compared with July 2025. Both exports (up 6.2 percent) and imports (up 7.6 percent) rose compared with the same period last year.

Key exported and imported products

Notícias relacionadas:

• Brazil’s Central Bank cuts benchmark interest rate to 14%.
• Second quarter has 5.4% unemployment, lowest ever for the period.
• Aircraft, oil, coffee, beef exempt from tariffs imposed by US.

According to the ministry, agricultural exports increased by 9.3 percent, driven mainly by soybean exports, which were up by approximately USD 870 million. In the extractive industry, crude oil exports rose by USD 960 million, while in the manufacturing sector, fuel oil exports also increased by USD 960 million. In the case of fuels, export growth exceeded 63 percent.

July’s imports were driven mainly by higher purchases of petroleum fuel oils (up USD 500 million), automatic data-processing machines and their units (up USD 320 million), medicines and pharmaceutical products, excluding veterinary products (up USD 320 million), thermionic, cold-cathode, or photocathode valves and tubes, diodes and transistors (up USD 290 million), and ethylene polymers in primary forms (up USD 150 million).

Trading partners

According to July’s trade balance results, China remains Brazil’s main trading partner, accounting for nearly one-third of Brazilian exports last month, with shipments totaling more than USD 10.7 billion - an 8.6 percent increase compared with July 2025.

The United States ranked second, accounting for 10.7 percent of Brazilian exports in July, down 5 percent from the same month in 2025. The decline does not yet reflect the effects of the US government’s new tariff hike, which took effect on July 22 and is expected to affect August sales, with data to be released in early September.

Brazil’s exports to Argentina also fell last month, declining by nearly USD 230 million, or 13.9 percent compared with July of last year. Although not directly related, this development comes at a time of renewed tensions between the governments of the two neighboring countries following successive attacks by Argentine President Javier Milei against Brazilian President Luiz Inácio Lula da Silva. The dispute led Brazil’s Ministry of Foreign Affairs to downgrade diplomatic relations with Buenos Aires.

Year-to-date

From January through July, Brazil’s trade balance recorded a surplus of USD 49 billion, with both imports and exports increasing compared with the same period last year.

Year-to-date figures (January–July 2026):

Exports: USD 218.6 billion (+10.5%)
Imports: USD 169.5 billion (+5.5%)
Total trade: USD 388.1 billion (+8.2%)
Trade balance: USD 49 billion surplus

The Brazilian government argued before the World Trade Organization (WTO) that the tariffs imposed by the United States are “inconsistent” with WTO rules. Brazil submitted the document to the organization last Monday (July 27), but it was not made public until Thursday (Jul. 30).

“The measures in question [taken by the US] appear to be inconsistent with the US’s obligations under the General Agreement on Tariffs and Trade 1994,” Brazil stated. The agreement sets out the rules governing the imposition of tariffs by WTO members.

Notícias relacionadas:

• Tariff hike: Brazil files WTO complaint against US measures.
• Tariff hike: In Washington Post article, Lula criticizes US stance.
• Tariff hike: New 12.5% US tariff on Brazilian products takes effect.

Brazil also asserts that it is being treated less favorably by the US in trade relations compared with other WTO members:

“By imposing tariffs on products originating in Brazil under Section 301, while not imposing such tariffs on other WTO members, the US has failed to accord products originating in Brazil the advantages, favors, privileges, or immunities granted to products originating in other WTO members.”

The Brazilian government presented its arguments in a request for consultations with the United States under the WTO dispute settlement system. The document outlines the dispute, including US allegations of discriminatory treatment by Brazil.

The request for consultations represents the first formal stage of the WTO’s dispute settlement system. At this stage, countries seek to negotiate a resolution before a panel may be established to review the case.

According to the Ministry of Foreign Affairs, the initiative seeks to challenge whether US tariff measures comply with multilateral trade rules.

Tariffs

One of the measures challenged at the WTO stems from a specific investigation into Brazil that resulted in the imposition of an additional 25 percent tariff on Brazilian products. In the proceedings, the United States examined issues such as digital trade and electronic payment services, preferential tariffs, the enforcement of anti-corruption legislation, intellectual property protection, access to the ethanol market, and efforts to combat illegal deforestation.

The second measure resulted from an investigation involving 60 countries and imposed an additional 12.5 percent tariff on Brazilian products. In this case, the investigation focused on whether restrictions were in place and enforced on the import of goods produced, in whole or in part, using forced labor.

On Monday (Jul. 27), the Brazilian government filed a request for consultations with the United States through the World Trade Organization’s (WTO) dispute settlement system, challenging two tariff measures adopted under Section 301 of the US Trade Act of 1974.

According to a statement released by the Ministry of Foreign Affairs, Brazil considers the tariffs to be unjustified and inconsistent with the obligations assumed by the United States under the General Agreement on Tariffs and Trade of 1994 (GATT 1994) and the rules governing the WTO’s dispute settlement mechanism.

Notícias relacionadas:

• Tariff hike: In Washington Post article, Lula criticizes US stance.
• Tariff hike: US excludes 471 products from new 12.5% tariff.
• Brazilian companies hit by US tariff hike to have BRL 18.5B in aid.

One of the contested measures stems from a Section 301 investigation into Brazil and imposed an additional 25 percent tariff on Brazilian products. The investigation examined issues such as digital trade and electronic payment services, preferential tariffs, the enforcement of anti-corruption legislation, intellectual property protection, access to the ethanol market, and efforts to combat illegal deforestation.

The second measure resulted from an investigation involving 60 economies and imposed an additional 12.5 percent tariff on Brazilian products. In this case, the investigation focused on the existence and enforcement of restrictions on the importation of goods produced, in whole or in part, with forced labor.

The request for consultations represents the first formal stage of the WTO dispute settlement process. At this stage, the parties seek to negotiate a solution to the dispute before a panel is established to review the case.

According to the Ministry of Foreign Affairs, the initiative seeks to challenge the consistency of the US tariff measures with multilateral trade rules.

Tariff hike

The new tariffs announced by the United States will affect Brazilian products worth USD 6.6 billion exported to the US market, according to the Ministry of Development, Industry, Trade, and Services.

The ministry estimates that the cumulative 37.5 percent surcharge will affect 16.5 percent of Brazilian exports to the US.

The affected products include machinery and equipment, various types of wood, fats and oils, footwear, furniture, and apparel.

The US newspaper The Washington Post published an op-ed on Sunday (Jul. 26) by President Luiz Inácio Lula da Silva criticizing the US government’s tariff measures against Brazil. In the article, Lula challenged the arguments used to justify the tariffs, argued that such measures would also harm the US economy, and stated that “Brazil will not be defeated based on lies.”

The president also argued that Trump’s decision had an ideological component, claiming that it was intended to interfere in Brazilian politics and this year’s elections. The article was also shared on the president’s social media channels.

Notícias relacionadas:

• Tariff hike: US excludes 471 products from new 12.5% tariff.
• Tariff hike: Reciprocity is not retaliation, says vice-president.
• Brazil says US tariffs are unjustified.

“Attempts to impose ideological constraints on the bilateral partnership, or to instrumentalize it for electoral purposes, are unfounded. Never before has a US Secretary of State labeled Brazil an unfriendly country. No one will defeat us based on lies,” said Lula.

The Brazilian president was referring to remarks by Marco Rubio, the Secretary of State who, in early June, excluded Brazil from the list of US-friendly countries in Latin America.

In the article, Lula reiterated the argument the Brazilian government has made since the tariffs were announced in April 2025: that the US maintains a trade surplus with Brazil. He added that Brazil would seek new trading partners around the world.

“In the medium term, these tariffs will disrupt highly integrated production chains, and Brazilian companies will replace US suppliers with other partners,” the president emphasized.

“Strategic error”

On July 15, the Office of the United States Trade Representative (USTR) imposed a 25 percent surcharge on various Brazilian products.

The tariffs affected exports of iron and steel, apparel, footwear, sugar, ethanol, pharmaceuticals, agricultural machinery, non-aviation electrical machinery, and other manufactured goods.

The USTR justified the tariffs by arguing that certain Brazilian practices were unreasonable and burdened or restricted trade for US farmers, workers, innovators, and exporters. In his Washington Post op-ed, Lula countered the USTR’s position:

“Beyond being unfair, the new tariffs are a strategic error: they harm the US economy and the partnership with Brazil. Various US industrial sectors rely on Brazilian inputs. Food, footwear, textiles, furniture, auto parts, and many other products will reach US consumers at higher prices.”

Lula also defended Brazil’s efforts to combat deforestation, its legislation addressing crimes committed on social media, and Pix - the instant payment system used in Brazil. All of these issues had been criticized by the US government in recent months.

“We respect the sovereignty of other states and negotiate with all those who respect ours. Reciprocity is the foundation of every relationship between nations, and we have appropriate mechanisms to guarantee it,” the president concluded, reaffirming Brazil’s openness to dialogue.

The United States has released a list of 471 Brazilian products that will be exempt from the new 12.5 percent surcharge imposed over alleged failures to combat forced labor. Among the items excluded from the measure are coffee, oil, natural gas, fertilizers, lumber, orange juice, and açaí products.

The list was published on Thursday (Jul. 23) by the Office of the United States Trade Representative (USTR) and includes exemptions covering 20 major product categories.

Notícias relacionadas:

• Tariff hike: New 12.5% US tariff on Brazilian products takes effect.
• Brazilian companies hit by US tariff hike to have BRL 18.5B in aid.
• Tariff hike: US builds false narrative around big tech, experts say.

The new tariff took effect early Friday morning (24). For products not included on the list of exemptions, the additional surcharge will be added to the 25 percent tariff imposed by the US since Wednesday (22), raising the total tariff rate to 37.5 percent on some Brazilian exports.

What was left out

The list of exemptions includes products considered strategic to trade between Brazil and the United States, as well as inputs used by US industry.

Among the main exempt items are:

• coffee;
• petroleum and petroleum products;
• natural gas;
• fertilizers;
• wood and wood products;
• orange juice;
• açaí products;
• pesticides;
• leather and hides;
• pig iron;
• aluminum waste and scrap;
• semiconductor manufacturing equipment;
• certain medications and pharmaceutical ingredients;
• works of art, antiques, and collectibles.

Also excluded were various industrial inputs, minerals, metal waste, and products used in the technology and pharmaceutical industries.

How it works

The new surcharge was announced following an investigation by the US government under Section 301 of the US Trade Act.

According to the USTR, Brazil is among a group of countries that, in the US assessment, lack sufficient mechanisms to prevent the importation of products manufactured using forced labor.

Despite this, the US government decided to exempt hundreds of products from the tariff measure.

According to the agency, the exemptions take into account factors such as the importance of certain inputs to the US economy, existing trade commitments, and the specific characteristics of certain markets.

The United States announced on Thursday (Jul. 23) the imposition of a new 12.5 percent tariff on Brazilian products, alleging that Brazil has not adopted effective mechanisms to prevent the import of goods produced using forced labor. The measure took effect on Friday (24).

The new tariff replaces the temporary 10 percent across-the-board rate that had been in effect since February and comes in addition to the 25 percent surcharge on Brazilian products that took effect on July 22. As a result, some of Brazil’s exports to the US market may be subject to tariffs of up to 37.5 percent.

Notícias relacionadas:

• Brazilian companies hit by US tariff hike to have BRL 18.5B in aid.
• Tariff hike: Reciprocity is not retaliation, says vice-president.
• Tariff hike: US builds false narrative around big tech, experts say.

The decision was made by the Office of the United States Trade Representative (USTR) following an investigation conducted under Section 301 of the Trade Act of 1974.

Rationale

According to the US government, Brazil is among 54 countries that neither prohibit nor effectively monitor the import of products manufactured using forced labor.

In the USTR’s assessment, this failure creates an unfair competitive advantage by allowing the circulation of goods produced with forced labor at lower costs.

US Trade Representative Jamieson Greer stated that the practice harms US companies and workers.

“The failure of our trading partners to address the importation of goods made with forced labor is unacceptable. This forces American workers to compete on an uneven playing field,” Greer said in a statement.

Products

The report states that, between 2021 and 2025, Brazil imported products linked to forced labor in five sectors:

• aluminum;
• cotton;
• electronics;
• lithium batteries;
• tobacco.

According to the USTR, these products could enter the Brazilian market at artificially low prices and subsequently affect the competitiveness of domestic exports.

The document also notes that, although Brazil participates in international agreements to combat forced labor and maintains the so-called “Dirty List of Slave Labor,” the United States considers the country’s mechanisms insufficient to prevent the importation of these goods.

Countries

The investigation covered 60 US trading partners.

In addition to Brazil, 53 other countries were subject to the 12.5 percent surcharge, including China, Argentina, Australia, Japan, India, the United Kingdom, and South Africa.

Brazilian reaction

In a statement, the Brazilian government criticized the new 12.5 percent tariff imposed by the United States and described the measure as “arbitrary” and “unjustified.” According to the Brazilian government’s Secretariat for Social Communication (Secom), Brazil provided the US government with information on its legislation and enforcement mechanisms to prevent the importation of products associated with forced labor, while also highlighting the country’s international recognition for combating forced labor.

The statement also notes that the government intends to invoke the mechanisms provided for under the Reciprocity Act and bring the case before the World Trade Organization’s (WTO) dispute settlement system.

While considering a diplomatic response, Brazil is maintaining measures to support exporters affected by US tariffs through the “Plano Brasil Soberano” (Sovereign Brazil Plan) initiative, which provides credit lines and incentives to access new markets.