Brazil footwear trade deficit emerges for first time as imports rise
Brazil’s footwear industry posted its first monthly trade deficit since official records began in 1997, as rising imports and weaker exports increased pressure on domestic producers.
According to data compiled by Abicalçados, based on Secex figures, Brazil imported US$66 million worth of footwear in July, equivalent to 4 million pairs. Revenue was stable from July 2025, while volume fell 4.1%.
Exports moved in the opposite direction. Brazilian footwear shipments totaled US$62.38 million and 6.28 million pairs in July, down 18.6% in revenue and 12.5% in volume from the same month last year. The result left the sector with a US$3.6 million trade deficit for the month.
According to Datamar data, footwear imports rose to 3,467 TEUs in the January-June period this year. The chart below shows the monthly evolution of these inbound shipments:
Footwear Imports | Jan 2023 – Jun 2026 | TEUs
Source: DataLiner (click here to request a demo)
From January to July, imports reached US$373 million and 29.9 million pairs, up 10.4% in value and 12.8% in volume from the same period in 2025. Exports totaled US$470.6 million and 55.3 million pairs, down 18% in revenue and 7.6% in volume.
Abicalçados Executive President Haroldo Ferreira said the increase in imports, especially from Asia, has added pressure to Brazil’s footwear industry. Domestic production fell 5.6% in the first half of the year, according to the association.
Ferreira said exports were already declining in Brazil’s two main markets, the United States and Argentina, and now face additional pressure from higher U.S. tariffs. At the same time, imports continue to grow even as domestic consumption remains weak, expanding their share of the Brazilian market at the expense of local industry and jobs.
Abicalçados said it has asked the federal government for safeguard measures and other trade defense tools, as well as stronger import control and monitoring.
Asian suppliers expand share in Brazil
China, Vietnam and Indonesia accounted for nearly eight out of every 10 pairs of footwear imported by Brazil from January to July, reinforcing Asia’s growing presence in the domestic market.
Imports from China totaled US$31 million and 10 million pairs in the period, up 13% in value and 26.8% in volume from a year earlier.
Vietnam remained the largest supplier by value, shipping US$181 million and 8.3 million pairs to Brazil, increases of 11.5% in revenue and 0.2% in volume.
Indonesia ranked third, with US$86.23 million and 4.78 million pairs. Revenue rose 2.4%, while volume fell 11.4% compared with the same period in 2025.
U.S. and Argentina remain top export markets
The United States remained the main destination for Brazilian footwear exports, still accounting for one in every five dollars generated by the sector abroad.
From January to July, Brazil exported US$101 million and 6.25 million pairs of footwear to the U.S., down 25% in revenue and 9.3% in volume from the same period last year.
Argentina remained the second-largest destination. Shipments to the neighboring market totaled US$48.8 million and 3.26 million pairs, sharp declines of 58.4% in revenue and 57.7% in volume.
Paraguay ranked third, with US$25.83 million and 4.7 million pairs. Exports to Paraguay rose 10.4% in value but fell 7.1% in volume.
Rio Grande do Sul leads exports
Rio Grande do Sul remained Brazil’s leading footwear-exporting state. From January to July, factories in the state shipped US$234.56 million and 19.7 million pairs abroad. Revenue fell 14.1%, while volume rose 6%.
Ceará ranked second, with US$84.75 million and 15.72 million pairs, down 28% in value and 19.4% in volume. São Paulo followed with US$48.75 million and 3.46 million pairs, declines of 18.5% and 15.9%, respectively.
For exporters, freight forwarders and logistics operators, the first Brazil footwear trade deficit is a warning sign for a sector that has long relied on export markets to offset domestic pressure. The combination of weaker sales to the U.S. and Argentina, rising Asian imports and new tariff risks could reshape cargo flows, sourcing strategies and demand for export logistics in the months ahead.
Source: Abicalçados