Exports from Brazil to the US fell 18.5% in August.

Brazil's exports to the United States, its second-largest trading partner, fell 18.5% in August compared to the same month last year, to $2.8 billion, according to data published Thursday by the Ministry of Development, Industry, Commerce and Services.

Sales to China, Brazil's main export destination, increased by 29.9% to $9.6 billion. Shipments to Argentina (40.4% to $1.6 billion) and Mexico (43.8% to $790 million) also increased, suggesting a possible diversion of goods originally destined for the United States.

It's worth remembering that the Donald Trump administration raised tariffs on Brazilian products to 50% from 10% starting in August, while expressing support for former far-right president Jair Bolsonaro, who is on trial for allegedly orchestrating an attempted coup following his defeat in the 2022 elections.

Washington excluded several products from the highest tariff, including airplanes and orange juice, but other core products in Brazil's export basket, such as coffee and beef, were affected.

On the other hand, Brazil's total trade balance recorded a surplus of $6.133 billion in August. This result was 35.8% higher than the same period last year, always based on the daily average, at the height of the 50% tariff on Brazilian products exported to the United States.

Total exports reached $29.861 billion in the month, a 3.9% increase compared to August of the previous year. Imports reached $23.728 billion, a 2% decrease compared to the same period last year.

Year-to-date, exports totaled $227.583 billion, an increase of 0.5 percent compared to the same period in 2024. Imports reached $184.771 billion, an increase of 6.9 percent. Trade flow, the sum of exports and imports, reached $412.354 billion, an increase of 3.2 percent.

Agricultural exports grew 8.3% in August, always calculated on a daily average, compared to the same month last year. The extractive industry saw an 11.3% increase, while manufacturing industry shipments decreased 0.9%.

Last month, Brazilian Finance Minister Fernando Haddad said trade talks with the United States have stalled due to what he called an "impossible" demand from President Donald Trump's administration.

"The negotiations aren't taking place simply because the United States wants us to act against the Constitution and for the executive branch to interfere in judicial decisions," he said during an event organized by CNBC and the Financial Times in São Paulo.