Chile - Brazil Trade 2025 Q2: Widening Deficit

Key Market Takeaways: Chile - Brazil Trade

The bilateral trade relationship between Chile and Brazil reflects a widening trade deficit amid volatile demand and supply dynamics in Q2 2025.

• Economic Pulse: Chile posted a $620M trade deficit with Brazil, driven by $1.87B in imports (+42.02% YoY peak in June) outweighing $1.25B in exports (consistent YoY declines).
• Exchange Structure: Chile - Brazil trade statistics reveal a resource-for-tech imbalance—Chile supplies raw copper (43.3% of exports) while relying on Brazilian energy (27.8% of imports) and machinery.
• Strategic Interdependence: High commodity concentration underscores mutual but asymmetric reliance, with Chile in a lower value-add position.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Chile-Brazil Trade Trend in Q2 2025

Chile Export Performance: Shipments to Brazil

• Total Volume: $1.25B in Q2 2025.
• Growth Trend & Context:
  • Sustained YoY decline across all months (Apr: -9.12%, May: -12.73%, Jun: -12.33%), signaling persistent demand weakness or competitive shifts.
  • No specific trade news to explain the trend.
• Key Volatility: June saw the sharpest MoM drop (-17.38%), likely reflecting seasonal or inventory adjustments.

Chile Import Performance: Sourcing from Brazil

• Total Volume: $1.87B in Q2 2025.
• Growth Trend & Context:
  • Mixed YoY performance: April (+5.93%) and June (+42.02%) growth offset May’s sharp contraction (-29.01%), suggesting volatile supply or demand conditions.
• Key Volatility: June imports surged 23.43% MoM, potentially indicating restocking or preemptive buying ahead of anticipated disruptions.

Chile - Brazil Trade Balance & Market Dynamics

• Net Position: Trade deficit of $620M (Imports exceeded exports).
• Relationship Status: Chile remains a net importer from Brazil, with import volatility highlighting reliance on Brazilian goods. The deficit widened compared to Q2 2024, driven by stronger import recovery in June.

Chile Import Trend from Brazil 2025 Q2 (Source: yTrade)**

Chile Export Trend to Brazil 2025 Q2 (Source: yTrade)**

Get Historical Chile Brazil Trade Records

Chile-Brazil Top Trading Products in Q2 2025

Chile Export Profile: What Does Chile Sell to Brazil

• Top Commodity: Copper (HS 74) dominates exports, accounting for 43.30% of total value.
• Demand Driver: Brazil relies on Chilean copper for industrial processing, likely in construction and electronics manufacturing.
• Concentration: High—copper alone holds over 40% share, indicating a lopsided export structure.

Chile Import Profile: What Does Chile Buy from Brazil

• Top Commodity: Mineral fuels (HS 27) lead imports at 27.76% of total value.
• Dependency Nature: Energy security dependency, as Brazil supplies critical oil and coal products.

Chile - Brazil Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile exports raw copper (HS 74) while importing Brazilian energy (HS 27) and machinery (HS 84).
• Value Chain Position: Chile holds the lower value-add position, exporting raw materials (copper, fish) and importing higher-value goods (machinery, chemicals).

Import Analysis by Product: Brazil to Chile (Source: yTrade)

Export Analysis by Product: Chile to Brazil (Source: yTrade)

Check Detailed Chile-Brazil Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile’s trade deficit with Brazil is likely to persist in Q3 2025, driven by continued volatility in imports and weak export demand. The June surge in Brazilian mineral fuel purchases suggests short-term restocking, but Chile’s overreliance on copper exports leaves it vulnerable to price swings and demand shifts. Without diversification, the lopsided trade structure will keep Chile in a lower value-add position. Traders should brace for uneven recovery, with import costs outpacing export earnings.

Strategic Moves

• Diversify Export Markets: Reduce dependence on Brazilian copper demand by targeting Southeast Asian and European buyers for processed copper products.
• Lock in Energy Contracts: Secure long-term pricing agreements with Brazilian fuel suppliers to mitigate volatility in mineral fuel imports.
• Invest in Value-Add Processing: Shift from raw copper exports to semi-finished or finished goods (e.g., copper wiring) to capture higher margins and reduce trade imbalance.

Frequently Asked Questions

How did Chile - Brazil trade perform in 2025 Q2?

Chile recorded a trade deficit of $620M with Brazil in Q2 2025. Exports fell YoY (-9.12% to -12.73%), while imports showed mixed growth (+5.93% to +42.02%).

What are the top exports from Chile to Brazil?

Copper (HS 74) dominates Chile’s exports to Brazil, accounting for 43.30% of total export value.

What does Chile import from Brazil?

Mineral fuels (HS 27) lead Chile’s imports from Brazil, making up 27.76% of total import value, followed by machinery (HS 84).

What is the trade balance between Chile and Brazil?

Chile had a trade deficit of $620M with Brazil in Q2 2025, which widened compared to Q2 2024 due to stronger import recovery.