Brazil’s Footwear Sector Records First Trade Deficit as Imports Rise

Brazil’s footwear industry recorded its first-ever trade deficit in July, as rising imports coincided with a continued decline in exports. The historical trade data series began in 1997.

According to data compiled by the Brazilian Association of Footwear Industries (Abicalçados), footwear imports reached US$66 million and 4 million pairs in July. While import value remained stable compared with July 2025, the number of pairs fell by 4.1%.

Exports, however, saw a sharper decline. In July, Brazil exported US$62.38 million worth of footwear, or 6.28 million pairs, down 18.6% in value and 12.5% in volume compared with the same month last year.As a result, the sector recorded a trade deficit of US$3.6 million in July.

For the January-July period, footwear imports totaled 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 during the same period stood at US$470.6 million and 55.3 million pairs, with value falling 18% and volume declining 7.6% year on year.

Haroldo Ferreira, CEO of Abicalçados, said the continued rise in imports, particularly from Asia, is putting additional pressure on Brazil’s footwear manufacturers.

Brazilian footwear production fell 5.6% in the first half of the year compared with the same period in 2025. Ferreira also pointed to weaker exports to the industry’s two main markets, the United States and Argentina, saying new US tariffs could add further pressure.

He warned that imports are continuing to increase despite weak domestic demand, giving imported footwear a larger share of the Brazilian market while putting pressure on local production and jobs.