Brazil Posts $6.96 Billion October Trade Surplus as U.S.-Bound Exports Plunge 38%

Overview

• MDIC reported exports of $31.97 billion and imports of $25.01 billion in October, yielding a $6.96 billion surplus and the strongest October for shipments on record.
• Sales to the United States fell 37.9% to about $2.21 billion as higher duties took effect, while imports from the U.S. rose to $3.97 billion, producing a $1.76 billion monthly deficit.
• Stronger demand from other partners helped offset the U.S. drop, with China up 33.4%, Asia overall up 21.2% and Europe higher, led by soy, iron ore, beef and crude.
• MDIC’s Herlon Brandão said tariffs are not the sole cause of the U.S. slump, citing softer American demand and declines in non‑tariffed items such as fuel oils and pulp, and he noted industrial goods are harder to reroute than commodities.
• Even with 694 items spared from the full 50% surcharge (about 43% of 2024 U.S. sales), business groups urged renewed dialogue after the Lula–Trump contact, and Brazilian and U.S. officials are expected to meet in Canada next week to discuss the measures.