Trump’s tariffs are hitting Brazil. The footwear supply chain could lose up to 20,000 jobs. For the Brazilian tanning industry, it’s a double loss: the reduction in purchases from U.S. customers is followed by a drop in sales to Brazilian shoe factories exporting to the U.S. Here are the reactions.
Trump’s tariffs
In 2024, Brazil shipped $166.8 million worth of hides to the United States, but since Aug. 6, U.S. authorities have applied a 50% duty on these exports. In the weeks before the rate took effect, Brazilian tanneries shipped goods to avoid the duties, but now tanneries report a breakdown in negotiations with U.S. importers for sales that could normally bring in $200 million annually. Jose Fernando Bello, CEO of the Brazilian Tanning Industry Center (CICB), told Valor that the industry is very concerned about the impact of the duties.
“This is a hard blow for us. The United States is our second largest customer, and is a market we have fought hard for, with strict technical and quality standards. We don’t want to lose it. We will do everything we can to keep it”. Bello pointed out that the local tanning industry faces a “double loss”: in addition to the decline in orders from U.S. customers, there is the one of Brazilian shoe factories, many of which export to the United States.
Losses
In 2024, Brazil shipped 10.28 million pairs of shoes to the U.S., generating a value of $216.3 million: making the U.S. its main market. That is, 20% of Brazil’s total exports. According to a survey conducted by the Brazilian Footwear Industry Association (Abicalçados), nearly 80% of exporting companies surveyed report impacts due to the 50% duty. Haroldo Ferreira, CEO of Abicalçados, points to delays or interruptions in negotiations, declining sales, and cancellations of orders, including those completed and ready to ship or in production. The association estimates a loss of about 8,000 direct jobs in the sector. Considering the entire supply chain, the industry stands to lose up to 20,000 jobs. “We estimate a 9% drop in exports over the next 12 months, a direct reflection of shipments to the United States”, Ferreira laments.
Photo from Shutterstock
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