Changes in terrestrial tropical carbon stocks have an important role in the global carbon budget. However, current observational tools do not allow accurate and large-scale monitoring of the spatial distribution and dynamics of carbon stocks¹. Here, we used low-frequency L-band passive microwave observations to compute a direct and spatially explicit quantification of annual aboveground carbon (AGC) fluxes and show that the tropical net AGC budget was approximately in balance during 2010 to 2017, the net budget being composed of gross losses of −2.86 PgC yr⁻¹ offset by gross gains of −2.97 PgC yr⁻¹ between continents. Large interannual and spatial fluctuations of tropical AGC were quantified during the wet 2011 La Niña year and throughout the extreme dry and warm 2015–2016 El Niño episode. These interannual fluctuations, controlled predominantly by semiarid biomes, were shown to be closely related to independent global atmospheric CO₂ growth-rate anomalies (Pearson’s r = 0.86), highlighting the pivotal role of tropical AGC in the global carbon budget.