Trade between Argentina and Brazil grew in May but left a significant deficit.

Trade between Argentina and Brazil grew 34% in May , reaching US$2.86 billion, according to a report by the Argentine Chamber of Commerce (CAC). The balance, however, closed negative with a deficit of US$535 million , due to a sharp increase in imports and a slight rebound in Argentine exports .

Compared to May 2024, when trade reached US$2.132 billion, bilateral flows increased considerably. Furthermore, the change compared to April of this year was also positive: 11.4%. However, this increase is almost entirely explained by the jump in purchases made by Argentina from the neighboring country.

Sharp rise in imports from Brazil

Argentine exports totaled US$1.163 billion in May, representing a 3.9% year-over-year increase. They also recovered by 19.6% compared to April, thus halting two months of decline. Among the top-selling products were transportation vehicles, aluminum, piston engines, alcohols, and phenols.

Despite this improvement, the weight of imports was greater. Argentina purchased US$1.698 billion in goods from Brazil, marking a 67.4% increase compared to the same month last year. It also exceeded the values ​​recorded in April by 6.3%. Among the most imported products were passenger cars, utility vehicles, vehicle parts and accessories, and engines.

This scenario left Argentina with a cumulative trade deficit of US$2.451 billion in the first five months of 2025. In the same period last year, the balance had been positive by US$142 million.

Argentina ranked fourth among Brazil's suppliers

Argentina ranked fourth among Brazil's main suppliers , behind China, the United States, and Germany. As for buyers of Brazilian products, it ranked third, behind only China and the United States.

Meanwhile, Brazil's foreign trade showed an overall surplus . Its total exports fell 0.1% year-on-year, while imports grew 4.7%. Even so, the trade result was positive, amounting to US$7.239 billion, allowing it to maintain a positive balance for the third consecutive month.

The impact of the economic model promoted by Javier Milei could influence future results. For now, the trade deficit with the country's main regional partner remains one of the challenges of his administration.