Does Brazil benefit from the tariff war between the US and China? Not so far. April leather exports indicate that tariffs are weighing in, and the sector is beginning to feel the effects of a slowdown in shipments, influenced by the trade war affecting its main Asian destination. And for footwear, Brazil and the customer countries for local shoes represent alternative destinations for made-in-China shoes that are experiencing difficulties entering the U.S. market.
Tariffs weigh on exports
Shipments of wet blue and split leather, which last year increased by more than 30% in value and volume, are contracting, putting negative pressure on Brazil’s overall export performance. Only the exported area of wet blue continues to grow. In European markets, in addition, the excessive appreciation of the euro has negatively affected Brazil’s tanning industry. According to numbers released by Brazilian Leather, from January to April 2025, export sales were $392.6 million, 9% less than the same period in 2024.
But there is a slight increase (+0.2%) for area and a larger growth (+12.8%) for weight. Italy ranks third behind China and (by a very small margin) the United States, and has a 13% share in value, which is up 2.9% from the first four months of 2024. At the area level, it has a 15.2% share and has grown 16.4%. In weight, the share is 14.9% and the performance is +21.1%.
The Numbers
Data compiled by the Brazilian Footwear Industry Association (Abicalçados), based on numbers released by the Secretariat of Foreign Trade (Secex), shows that between January and May 2025, footwear exports grew in both volume (45.83 million pairs +6.8%) and turnover ($427.18 million and +1.7%) compared to the same period in 2024. Haroldo Ferreira, CEO of Abicalçados, points out that the figures reflect the instabilities caused by the tariff war. “Although the trade war is pushing U.S. buyers to seek alternative suppliers to China, the latter continues to increase its exports, now to Brazil itself and to important markets for Brazilian footwear, such as Latin American countries”, Ferreira explains. “This unfair competition, with products at very low prices, is taking market share away from Brazil”, Ferreira himself concludes.
Photo from Shutterstock
Read also:
