US Tariffs impact Brazilian footwear industry: Export slowdown and job loss concerns

Abicalçados, the Brazilian Footwear Industries Association, analysed data based on figures from Secex, the Foreign Trade Secretariat. The analysis highlighted that in July, footwear exports totalled 76.74 million dollars. This represents a decrease of 11.8 percent compared to the same month in 2024. In the first seven months of 2025, exports remain positive, but on a downward trend. During this period, 59.88 million pairs were shipped abroad, generating 574 million dollars. This represents increases of 6.6 percent and 0.7 percent, respectively, compared to the same period last year.

Executive president of Abicalçados, Haroldo Ferreira, highlighted the reason for the slowdown in exports. It is mainly due to increased international competition, with a greater focus on Asian products, especially Chinese, from the United States to other markets. Many of these markets are typically served by the Brazilian industry. “Chinese exporters are redirecting their shipments to avoid the additional tariffs applied in the United States. This has been impacting our performance in important markets in Europe and Latin America,” Ferreira noted.

In the first seven months of the year, the main destination for Brazilian footwear abroad was the US. 6.9 million pairs were shipped to the US for 134.9 million dollars. This represents growth of 15.3 percent in pairs and seven percent in dollars compared to the same period in 2024. In July, the US imported one million pairs for 23.12 million dollars, an increase in both volume (plus 26.2 percent) and revenue (plus 6.4 percent) compared to July of the previous year.

Between January and July, Argentina was the second international destination for Brazilian footwear. During this period, they imported 7.72 million pairs for 117.26 million dollars. This represents increases of 32.3 percent and 4.6 percent, respectively, compared to the same period in 2024. In July, Argentina imported 1.3 million pairs for 13.34 million dollars, an increase of 6.9 percent in volume and a decrease of 32.8 percent in value compared to the same period last year.

The third destination for Brazilian footwear abroad in the first seven months of 2025 was Paraguay. During this period, Paraguay imported five million pairs for 23.4 million dollars. This represents an increase of 4.3 percent in volume and a decrease of 5.3 percent in revenue compared to the same period last year. In July, Paraguay purchased 102,000 Brazilian pairs for 2.2 million dollars, with decreases of 23.2 percent and 23 percent, respectively, compared to the corresponding period in 2024.

US tariffs impact 80 percent of footwear exporters

The 50 percent tariff on Brazilian products imported by the US is expected to impact the Brazilian footwear industry. The US is its main export destination, as shown above. According to a survey conducted by Abicalçados, almost 80 percent of the exporting companies consulted reported impacts due to the additional tariff.

According to Ferreira, the direct impact on exports corroborates the need for emergency measures to preserve jobs and Brazilian footwear companies. “Among the impacts already reported are delays or paralysis in negotiations; decreased turnover due to the measure; and cancellation of orders, some of which have already been produced or are in production,” he warned.

Threats of redundancy

Among the expected impacts for the coming months, if there is no solution to the impasse, is the loss of around 8,000 direct jobs in the sector. Adding indirect jobs, via the production chain, from the materials supplier to retail, this impact could reach 20,000 jobs. “We estimate a nine percent drop in exports over the next 12 months, a drop that will be driven by the US,” Ferreira lamented.

It was reported on the afternoon of August 11 that a meeting between the Brazilian finance minister, Fernando Haddad, and the US treasury secretary, Scott Bessent, scheduled for August 13, was cancelled by the US via email. “We tried to reschedule the meeting with the treasury secretary's office, but we soon realised that this was not the case,” Haddad said, according to sources from the Uol website.

The reason for the tariff, according to Trump, is not related to the economy but to Brazilian domestic political aspects (the trial and house arrest of former president Jair Bolsonaro, accused of attempting a coup after losing the election).

This article was translated to English using an AI tool.

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