Brazil's trade surplus jumps 40.3% in first half despite U.S. export drop

Brazil achieved a significant 40.3% increase in its trade surplus during the first half of 2026, reaching $42.357 billion. This growth occurred despite a notable 13% decline in exports to the United States, highlighting a shift in Brazil's key international trade relationships.

Overall exports saw a healthy rise of 11.5% in the first six months, totaling $184.772 billion. Imports also increased, growing by 5.1% to $142.415 billion. The positive balance reflects strong performance in international sales, even as the country navigated challenges in its trade with the U.S.

The decrease in exports to the U.S., Brazil's former second-largest trading partner, is partly attributed to tariffs imposed by the Trump administration. While some tariffs were lifted by judicial decision, new threats of additional tariffs loom, complicating future trade relations. These ongoing trade disputes have become a factor in the upcoming presidential election campaign.

Brazil's trade dynamics have been significantly reshaped by its relationship with China, its largest trading partner. Exports to China surged by 21.9% in the first semester, reaching $58.320 billion. Additionally, exports to the European Union grew by 12.8%, totaling $26.910 billion, propelling the EU to become Brazil's second-largest trading partner, surpassing the U.S.

Trade with Argentina, Brazil's neighbor and fourth-largest partner, saw a decline of 19.4% in the semester. Despite these fluctuations, the Brazilian government has raised its forecast for the full-year trade surplus to $90 billion, approaching the record surplus achieved in 2023.