Brazil’s footwear industry posted its first monthly trade deficit since record-keeping began in 1997, as surging Asian imports and falling exports pushed the sector into negative territory in July, according to data compiled by the Brazilian Footwear Industries Association (Abicalçados) based on figures from the Secretariat of Foreign Trade (Secex).
Imports totaled 66 million dollars and 4 million pairs in July, holding roughly steady in value but falling 4.1 percent in volume compared with the same month last year. Exports, meanwhile, dropped sharply to 62.38 million dollars and 6.28 million pairs, declines of 18.6 percent in value and 12.5 percent in volume year on year. The result was a trade deficit of 3.6 million dollars for the month, a first for a sector that has historically run a surplus.
Haroldo Ferreira, executive president of Abicalçados, said rising imports, particularly from Asia, have placed mounting pressure on the domestic industry, noting that Brazilian footwear production fell 5.6 percent year on year in the first half of 2026. He said exports had already been weakening in Brazil’s two largest markets, the United States and Argentina, and are now facing further strain from a US tariff increase. He added that import growth has continued even as domestic consumption remains sluggish, allowing foreign products to expand their footprint in the Brazilian market at the expense of local production and jobs.
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For the January to July period, imports climbed to 373 million dollars and 29.9 million pairs, up 10.4 percent and 12.8 percent respectively from the same period a year earlier. Exports over the same stretch totaled 470.6 million dollars and 55.3 million pairs, down 18 percent in value and 7.6 percent in volume.
The United States remained Brazil’s top export destination through July, but shipments there totaled just 101 million dollars and 6.25 million pairs, down 25 percent in value and 9.3 percent in volume from the prior year. Argentina, the second-largest market, saw an even steeper drop, with exports falling 58.4 percent in value and 57.7 percent in volume to 48.8 million dollars and 3.26 million pairs. Paraguay, ranked third, was a rare bright spot on the revenue side, with exports rising 10.4 percent in value to 25.83 million dollars, even as volume slipped 7.1 percent.
On the import side, three Asian countries, China, Vietnam and Indonesia, accounted for nearly eight in ten pairs entering Brazil. Vietnam led in value, shipping 181 million dollars worth of footwear, an 11.5 percent increase, alongside a 0.2 percent rise in volume to 8.3 million pairs. China posted the fastest growth, with imports up 13 percent in value and 26.8 percent in volume to 31 million dollars and 10 million pairs. Indonesia sent 86.23 million dollars worth of footwear, up 2.4 percent in value despite an 11.4 percent volume decline, to 4.78 million pairs.
Brazil remains one of the world’s largest footwear producers. According to the World Footwear 2026 Yearbook, the country made about 848 million pairs in 2025, with exports holding broadly stable in value at 958 million dollars while rising to 104 million pairs. Imports that year reached 606 million dollars. The domestic market continues to absorb the bulk of national output, though industry leaders say growing import pressure is testing that balance as Asian competition intensifies and traditional export markets soften.