Brazil - Italy Trade 2025 Q1: Widening Deficit
Key Market Takeaways: Brazil - Italy Trade
The bilateral trade relationship between Brazil and Italy showed volatile growth with a widening deficit in Q1 2025.
- Economic Pulse: Brazil ran a $590M trade deficit with Italy ($1.79B imports vs. $1.20B exports), as export growth turned negative (-7.88% YoY in March) while imports remained flat.
- Exchange Structure: Brazil - Italy trade statistics reveal a resource-for-tech dynamic—Brazil supplies coffee, wood pulp, and oil (53% of exports), while Italy dominates with machinery (32%) and pharmaceuticals.
- Strategic Interdependence: The partnership is highly complementary but imbalanced, with Italy holding the high-value position in critical industrial and medical supply chains.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Italy Trade Trend in Q1 2025
Brazil Export Performance: Shipments to Italy
- Total Volume: $1.20B in Q1 2025.
- Growth Trend & Context:
- YoY growth was strong in January (+71.46%) but turned negative by March (-7.88%), indicating a sharp reversal.
- No specific trade news to explain the volatility.
- Key Volatility: January saw a 68.85% MoM surge, while March dropped -8.27% MoM.
Brazil Import Performance: Sourcing from Italy
- Total Volume: $1.79B in Q1 2025.
- Growth Trend & Context:
- YoY growth started strong (+20.41% in January) but tapered to near-flat (+2.19% in February) and slightly negative (-0.97% in March).
- Key Volatility: January spiked 40.3% MoM, while February fell -17.88% MoM.
Brazil - Italy Trade Balance & Market Dynamics
- Net Position: Brazil ran a trade deficit of $590M (Imports $1.79B > Exports $1.20B).
- Relationship Status: Brazil remains a net importer from Italy, with reliance on Italian goods outweighing export demand.
Brazil Import Trend from Italy 2025 Q1 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jan | 661.33M | 40.3% | 20.41% |
| Feb | 543.09M | -17.88% | 2.19% |
| Mar | 583.14M | 7.38% | -0.97% |
| Total | 1.79B | - | - |
Brazil Export Trend to Italy 2025 Q1 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jan | 406.91M | 68.85% | 71.46% |
| Feb | 412.21M | 1.3% | 21.52% |
| Mar | 378.11M | -8.27% | -7.88% |
| Total | 1.20B | - | - |
Get Historical Brazil Italy Trade Records
Brazil-Italy Top Trading Products in Q1 2025
Brazil Export Profile: What Does Brazil Sell to Italy
- Top Commodity: Rank #1 export is HS Code 09 (Coffee, tea, spices) at 25.81% of total exports to Italy.
- Demand Driver: Italy uses these raw materials (coffee, wood pulp, oil) for industrial processing and consumer goods.
- Concentration: No single category dominates (>50%), but the top 3 exports (HS 09, 47, 27) account for 53.31%, showing moderate concentration.
Brazil Import Profile: What Does Brazil Buy from Italy
- Top Commodity: Rank #1 import is HS Code 84 (Nuclear reactors, machinery) at 31.56% of total imports from Italy.
- Dependency Nature: High-tech machinery and pharmaceuticals (HS 30) indicate critical technology dependency for Brazil’s industrial and medical sectors.
Brazil - Italy Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (coffee, wood pulp, oil) and imports high-value machinery and pharmaceuticals.
- Value Chain Position: Italy holds the higher value-add position, supplying advanced manufactured goods, while Brazil provides commodities.
Import Analysis by Product: Italy to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 564.11M | 31.56% |
| 30 | 241.73M | 13.52% |
| 87 | 149.48M | 8.36% |
| 85 | 138.61M | 7.75% |
| 73 | 67.18M | 3.76% |
| 39 | 66.97M | 3.75% |
| 90 | 59.81M | 3.35% |
| 29 | 57.87M | 3.24% |
| 38 | 32.15M | 1.80% |
| 40 | 29.99M | 1.68% |
Export Analysis by Product: Brazil to Italy (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 09 | 308.98M | 25.81% |
| 47 | 216.10M | 18.05% |
| 27 | 113.08M | 9.45% |
| 23 | 81.09M | 6.77% |
| 02 | 71.15M | 5.94% |
| 26 | 48.07M | 4.02% |
| 84 | 41.79M | 3.49% |
| 41 | 40.11M | 3.35% |
| 12 | 35.49M | 2.96% |
| 44 | 30.98M | 2.59% |
Check Detailed Brazil-Italy Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast for Brazil-Italy Trade
The Brazil-Italy trade relationship faces a mixed outlook for the remainder of 2025. While Brazil’s exports to Italy showed strong early-year growth, the sharp March decline suggests potential volatility ahead, possibly due to fluctuating commodity demand or supply chain disruptions. Italy’s steady but slowing imports of Brazilian goods indicate a cooling appetite, though high-tech machinery (HS 84) and pharmaceutical (HS 30) demand will likely remain resilient. Given Brazil’s structural trade deficit, exporters must prepare for tighter margins, while importers should anticipate continued reliance on Italian advanced manufacturing.
Strategic Moves for Traders & Policymakers
- Lock in Commodity Contracts: Brazilian coffee and wood pulp exporters should secure long-term agreements with Italian buyers to stabilize revenue amid volatile price swings.
- Diversify Tech Suppliers: Brazil’s over-reliance on Italian machinery (HS 84) poses a risk; importers must scout alternative suppliers in Germany or Japan to mitigate dependency.
- Push Value-Add Exports: Brazil’s trade deficit demands a shift from raw materials to processed goods (e.g., roasted coffee instead of beans) to capture higher margins in the Italian market.
Frequently Asked Questions
How did Brazil - Italy trade perform in 2025 Q1?
Brazil exported $1.20B to Italy and imported $1.79B, with volatile growth—exports surged in January but declined by March, while imports started strong but tapered off.
What are the top exports from Brazil to Italy?
Brazil's top exports to Italy are HS Code 09 (Coffee, tea, spices), HS 47 (Wood pulp), and HS 27 (Oil), accounting for 53.31% of total exports.
What does Brazil import from Italy?
Brazil's top imports from Italy are HS Code 84 (Nuclear reactors, machinery) and HS 30 (Pharmaceuticals), reflecting a reliance on high-tech and medical goods.
What is the trade balance between Brazil and Italy?
Brazil ran a trade deficit of $590M with Italy in Q1 2025, as imports ($1.79B) exceeded exports ($1.20B).
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