Increased tariffs on Brazilian products imported into the United States increased exports to China and Argentina. This is shown by a Ministry of Finance survey released this Thursday (11/15).
The ministry collected data from August to October, when tariffs were raised to 50%. Until then, the customs duty on Brazilian products was generally 10%.
At the same time that shipments of domestic products to China and Argentina increased, exports to North America decreased.
Data from August 2024 to October 2024 was compared with data from the same period in 2025. During this period, Brazil’s crude oil exports to the United States fell by 30.3% in absolute terms, or by USD 404 million.
The decline in domestic shipments to Americans was also notable for other items, including frozen beef (60.5%), eucalyptus cellulose (33%), and raw iron (27.8%). Refined sugar decreased by 91.6%, effectively halting shipments.
They bought more
Exports of various products from Brazil to China (25.7%) and Argentina (22%) increased. In absolute numbers, the profit was USD 6.5 billion.
Due to the differences in products between Brazil’s trading partners, the impact of tariffs could be reduced. For Argentina, the ministry focuses on automobiles, tractor trucks, energy and light vehicles.
The most notable increases in exports to China are soybeans, beef, oil, and iron ore.
The survey figures were announced at the ministry’s presentation of its November Macro Fiscal Report on Wednesday this week. This document is a bi-monthly report responsible for publishing short- and medium-term forecasts on economic activity and inflation indicators, and is used in the EU’s budgeting process.
effort
The department also released figures for the Sovereign Brazil Plan, an initiative to support companies most affected by North American tariffs. According to the ministry, by the beginning of November this year, 517 loan operations had been completed, worth R$7.1 billion.
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Of the 7.1 billion reais, 4 billion reais was allocated to working capital for market diversification, and 3.1 billion reais was allocated to conventional working capital. 126 large companies and 391 micro, small and medium enterprises (MSMEs) participated.
Aid outcomes fall far short of the total amount available to this effort. The Sovereign Brazil Plan was launched by the federal government to provide up to R$40 billion in loans through the National Bank for Economic and Social Development (BNDES) to entrepreneurs and exporters affected by US tariffs.
change of plans
In order to expand the scope of the Sovereign Brazil Plan, the National Monetary Council (CMN) approved a resolution changing the rules of the emergency line at an extraordinary meeting this Thursday.
The new resolution expands the scope of the program and also facilitates alignment of financial burdens and eligibility criteria. Among the main changes, the addition of exporting companies’ suppliers as beneficiaries of the loan facility stands out.
To qualify for the financing, the group’s suppliers must have at least 1% of their revenue derived from supplies to exporters that account for at least 5% of their revenue affected by North American tariffs for the period July 2024 to June 2025.
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