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Brazil posts first trade deficit in footwear since 1997

Aug 21, 2026 Brazil

Continued rising imports and declining exports have pushed the Brazilian footwear industry into its first trade deficit in July since records began in 1997

According to data compiled by the Brazilian Footwear Industries Association (Abicalçados) and based on statistics provided by the Foreign Trade Secretariat (Secex), imports totalled 66 million US dollars and 4 million pairs in July. This represents stability in value and a 4.1% fall in volume compared to July 2025. Meanwhile, exports totalled 62.38 million US dollars and 6.28 million pairs, reflecting respective declines of 18.6% and 12.5% compared to the same period in 2025.

As a result, the sector recorded a trade deficit of 3.6 million US dollars in July.

From January to July, imports amounted to 373 million US dollars and 29.9 million pairs, increases of 10.4% and 12.8%, respectively, compared to the same period last year. Meanwhile, exports over the same period totalled 470.6 million US dollars and 55.3 million pairs, reflecting a year-on-year decline in value of 18% and a decline in volume of 7.6%.

Haroldo Ferreira, the Executive President of Abicalçados, highlighted that increased imports, particularly from Asia, have put pressure on the Brazilian footwear industry, and noted that domestic production fell by 5.6% year-on-year in the first half of the year.

“Exports had already been declining in our two main markets, the United States and Argentina, and they are now facing additional pressure from the US tariff hike. Meanwhile, imports continue to grow, even amid sluggish domestic consumption, expanding their presence in the Brazilian market at the expense of the domestic industry and the creation and retention of jobs in the sector”, he said.

Declining Exports

Between January and July, 101 million US dollars’ worth of footwear was exported to the US, equivalent to 6.25 million pairs. This represents a decline in both revenue (-25%) and volume (-9.3%) compared to the same period of the previous year.

Argentina remains the second-largest international destination for Brazilian footwear. During the same period, exports to this country totalled 48.8 million US dollars and 3.26 million pairs, year-on-year decreases of 58.4% and 57.7%, respectively.

Paraguay ranks third, with 25.83 million US dollars’ worth of footwear shipped there during the first seven months of the year, equivalent to 4.7 million pairs. This represented a 10.4% increase in value, but a 7.1% drop in volume compared to the same period of 2025.

Rising Imports

Almost eight out of every ten pairs of imported footwear in Brazil come from three Asian countries: China, Vietnam and Indonesia.

Between January and July, imports from China totalled 31 million US dollars, equivalent to 10 million pairs, representing increases of 13% and 26.8%, respectively, compared to the same period of 2025.

Meanwhile, Vietnam exported 181 million US dollars’ worth of footwear to Brazil, equivalent to 8.3 million pairs. This represents an 11.5% increase in revenue and a 0.2% increase in volume compared to the first seven months of the previous year.

Third in the ranking, Indonesia exported 86.23 million US dollars’ worth of footwear to Brazil, equivalent to 4.78 million pairs. This represents a 2.4% increase in revenue, but an 11.4% fall in volume, compared to the same period in 2025.

Brazilian Footwear Industry

According to the World Footwear 2026 Yearbook (more information available HERE), Brazil remains home to one of the world’s largest footwear industries. In 2025, production reached about 848 million pairs, while exports were broadly stable in value at 958 million US dollars and increased to 104 million pairs. Imports continued to rise, reaching 606 million US dollars. The sector remains mainly oriented towards the domestic market, which absorbs most national output despite growing import pressure.

Image Credits: Gustavo Sánchez on Unsplash

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