Argentina - Brazil Trade 2025 Q2: Widening Deficit
Key Market Takeaways: Argentina - Brazil Trade
The bilateral trade relationship between Argentina and Brazil shows mixed growth with widening deficits in Q2 2025.
- Economic Pulse: Argentina posted a $1.92B trade deficit with Brazil ($5.08B imports vs. $3.16B exports), driven by surging Brazilian imports (+54-69% YoY) outpacing Argentina’s uneven export recovery.
- Exchange Structure: Intra-industry trade dominates, with vehicles (HS 87) accounting for 37.5% of Argentina’s exports and 45.7% of imports—highlighting deep automotive supply chain integration in bilateral trade data.
- Strategic Interdependence: Brazil holds a slight value-add edge in the automotive trade, but both economies remain tightly linked through reciprocal manufacturing flows.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Argentina-Brazil Trade Trend in Q2 2025
Argentina Export Performance: Shipments to Brazil
- Total Volume: $3.16B in Q2 2025.
- Growth Trend & Context:
- Mixed YoY performance: April (-11.63%) contracted sharply, but May (+3.69%) and June (+8.57%) rebounded.
- No specific trade news to explain fluctuations.
- Key Volatility: May saw a 23.55% MoM surge, while June dropped -6.6%.
Argentina Import Performance: Sourcing from Brazil
- Total Volume: $5.08B in Q2 2025.
- Growth Trend & Context:
- Strong YoY growth across all months (April +54.27%, May +56.74%, June +68.83%).
- Key Volatility: May peaked with an 8.23% MoM rise, but June dipped -3.87%.
Argentina - Brazil Trade Balance & Market Dynamics
- Net Position: Trade deficit of $1.92B (Imports $5.08B > Exports $3.16B).
- Relationship Status: Argentina remains heavily dependent on Brazilian imports, with deficits widening YoY.
Argentina Import Trend from Brazil 2025 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 1.63B | 3.81% | 54.27% |
| May | 1.76B | 8.23% | 56.74% |
| Jun | 1.69B | -3.87% | 68.83% |
| Total | 5.08B | - | - |
Argentina Export Trend to Brazil 2025 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 933.61M | -8.94% | -11.63% |
| May | 1.15B | 23.55% | 3.69% |
| Jun | 1.08B | -6.6% | 8.57% |
| Total | 3.16B | - | - |
Get Historical Argentina Brazil Trade Records
Argentina-Brazil Top Trading Products in Q2 2025
Argentina Export Profile: What Does Argentina Sell to Brazil
- Top Commodity: Vehicles (HS 87) dominate exports, accounting for 37.52% of total value.
- Demand Driver: Brazil imports vehicles for its consumer market, reflecting demand for transportation goods.
- Concentration: Trade is moderately concentrated, with the top category (HS 87) holding a 37.52% share.
Argentina Import Profile: What Does Argentina Buy from Brazil
- Top Commodity: Vehicles (HS 87) also lead imports, making up 45.67% of total value.
- Dependency Nature: High reliance on Brazilian vehicles suggests supply chain integration rather than critical dependency.
Argentina - Brazil Trade Relationship Dynamics
- The Exchange Model: Intra-Industry Trade dominates, with both countries exchanging vehicles (HS 87) as part of a shared automotive supply chain.
- Value Chain Position: Brazil holds a slight edge in value-add, given its higher export value in vehicles (2.32B vs. Argentina’s 1.19B).
Import Analysis by Product: Brazil to Argentina (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 87 | 2.32B | 45.67% |
| 84 | 506.18M | 9.97% |
| 39 | 211.37M | 4.16% |
| 85 | 193.21M | 3.81% |
| 72 | 158.70M | 3.13% |
| 48 | 113.31M | 2.23% |
| 40 | 111.67M | 2.20% |
| 12 | 106.63M | 2.10% |
| 18 | 103.62M | 2.04% |
| 38 | 81.70M | 1.61% |
Export Analysis by Product: Argentina to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 87 | 1.19B | 37.52% |
| 99 | 741.11M | 23.42% |
| 10 | 344.06M | 10.87% |
| 04 | 145.49M | 4.60% |
| 84 | 116.74M | 3.69% |
| 20 | 80.11M | 2.53% |
| 11 | 78.36M | 2.48% |
| 27 | 74.02M | 2.34% |
| 08 | 69.53M | 2.20% |
| 07 | 58.94M | 1.86% |
Check Detailed Argentina-Brazil Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
The Argentina-Brazil trade relationship is poised for continued growth in Q3 2025, driven by resilient intra-industry demand for vehicles (HS 87). While Argentina’s exports show signs of recovery after April’s contraction, the widening trade deficit underscores Brazil’s stronger position in the automotive supply chain. Expect Brazil’s import demand to remain robust, but Argentine exporters must address volatility by securing stable orders. Without diversification, the deficit could deepen further, risking overreliance on Brazilian inputs.
Strategic Moves
- Diversify Export Markets: Argentine vehicle exporters should target new regional buyers (e.g., Chile, Colombia) to reduce dependency on Brazil and mitigate deficit risks.
- Optimize Supply Chain Costs: Automakers in Argentina must renegotiate logistics contracts with Brazilian partners to lower cross-border transportation expenses and improve margins.
- Leverage Trade Agreements: Argentine firms should exploit Mercosur provisions to push for tariff reductions on intermediate goods, balancing the trade imbalance with Brazil.
Frequently Asked Questions
How did Argentina - Brazil trade perform in 2025 Q2?
Argentina's exports to Brazil totaled $3.16B, with mixed YoY growth, while imports from Brazil surged to $5.08B, driven by strong YoY increases across all months.
What are the top exports from Argentina to Brazil?
Vehicles (HS 87) dominate Argentina's exports to Brazil, accounting for 37.52% of the total export value.
What does Argentina import from Brazil?
Argentina primarily imports vehicles (HS 87) from Brazil, which make up 45.67% of the total import value.
What is the trade balance between Argentina and Brazil?
Argentina recorded a trade deficit of $1.92B with Brazil in Q2 2025, with the deficit widening YoY due to higher imports.
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