US tariffs worsen already difficult scenario for Brazil's textile sector, says industry

The Brazilian textile and apparel industry views the tariffs imposed by the United States with significant concern, arguing that the measures exacerbate an already challenging economic landscape. According to the Brazilian Association of Textile and Apparel Industry (Abit), the market is not experiencing robust consumption. This, combined with a rise in international shipments to Brazil after the repeal of the "blusinha tax" (a tax on low-value imported goods), has further strained the sector in recent months.

Fernando Pimentel, Abit's superintendent director, stated, "We have strong growth in conventional imports and a stagnant consumer market. This combination causes more damage than the tariffs at this moment." The association believes the tariffs will compel retailers to reassess their strategies, although this will not be an easy task. The sector is actively exploring more competitive international markets, with Europe and Mercosur identified as potential alternatives.

However, Abit acknowledges uncertainty regarding the feasibility of redirecting the approximately R$400 million in annual exports to the United States. Brazilian textile exports to the U.S. had already seen a nearly 12% decrease this year. Abit anticipates a decline in foreign sales and a potential migration of investments, while still calculating the precise financial impact, particularly on smaller businesses.

The association advocates for the continuation of negotiations, intending to argue that American companies will also suffer negative consequences. Pimentel noted, "After the tariffs, I already received an email from a wool buyer who is concerned about the impact of the tariffs on the sector. We need to show this to the government."