In the U.S.
Miranda arrived in New York on 18 May 1939. She and the band had their first Broadway performance on 19 June 1939 in The Streets of Paris. Although Miranda's part was small (she spoke only four words), she received good reviews and became a media sensation. According to New York Times theater critic Brooks Atkinson, most of the musical numbers "ap[e] the tawdry dullness" of genuine Paris revues and "the chorus girls, skin-deep in atmosphere, strike what Broadway thinks a Paris pose ought to be". Atkinson added, however, that "South American contributes the [revue's] most magnetic personality" (Miranda). Singing "rapid-rhythmed songs to the accompaniment of a Brazilian band, she radiates heat that will tax the Broadhurst [theater] air-conditioning plant this Summer". Although Atkinson gave the revue a lukewarm review, he wrote that Miranda made the show.
Syndicated columnist Walter Winchell wrote for the New York Daily Mirror that a star had been born who would save Broadway from the slump in ticket sales caused by the 1939 New York World's Fair. Winchell's praise of Carmen and her Bando da Lua was repeated on his Blue Network radio show, which reached 55 million listeners daily. The press called Miranda "the girl who saved Broadway from the World's Fair".
According to a Life magazine reviewer:
Partly because their unusual melody and heavy accented rhythms are unlike anything ever heard in a Manhattan revue before, partly because there is not a clue to their meaning except the gay rolling of Carmen Miranda's insinuating eyes, these songs, and Miranda herself, are the outstanding hit of the show.
When news of Broadway's latest star (known as the Brazilian Bombshell) reached Hollywood, Twentieth Century-Fox began to develop a film featuring Miranda. Its working title was The South American Way (the title of a song she had performed in New York), and the film was later entitled Down Argentine Way (1940). Although its production and cast were based in Los Angeles, Miranda's scenes were filmed in New York because of her club obligations. Fox could combine the footage from both cities because the singer had no dialogue with the other cast members. Down Argentine Way was successful, grossing $2 million that year at the US box office.
The Shuberts brought Miranda back to Broadway, teaming her with Olsen and Johnson, Ella Logan, and the Blackburn Twins in the musical revue Sons o' Fun on 1 December 1941. The show was a hodgepodge of slapstick, songs, and skits; according to New York Herald Tribune theater critic Richard Watts Jr., "In her eccentric and highly personalized fashion, Miss Miranda is by way of being an artist and her numbers give the show its one touch of distinction." On 1 June 1942, she left the production when her Shubert contract expired; meanwhile, she recorded for Decca Records.
Miranda was encouraged by the US government as part of Roosevelt's Good Neighbor policy, designed to strengthen ties with Latin America. It was believed that performers like her would give the policy a favorable impression with the American public. Miranda's contract with 20th Century Fox lasted from 1941 to 1946, coinciding with the creation and activities of the Office of the Coordinator of Inter-American Affairs. The goal of the OCIAA was to obtain support from Latin American society and its governments for the United States.
The Good Neighbor policy had been linked to American interference in Latin America; Roosevelt sought better diplomatic relations with Brazil and other South American nations and pledged to refrain from military intervention (which had occurred to protect American business interests in industries such as mining or agriculture). Hollywood was asked to help, and Walt Disney Studios and 20th Century Fox participated. Miranda was considered a goodwill ambassador and a promoter of intercontinental culture.
Although Miranda's American popularity continued to increase, she began to lose favor with some Brazilians. On 10 July 1940, she returned to Brazil and was welcomed by cheering fans. Soon after her arrival, however, the Brazilian press began criticizing Miranda for accommodating American commercialism and projecting a negative image of Brazil. Members of the upper class felt that her image was "too black", and she was criticized in a Brazilian newspaper for "singing bad-taste black sambas". Other Brazilians criticized Miranda for playing a stereotypical "Latina bimbo". In her first interview after her arrival in the US in the New York World-Telegram, she played up her then-limited knowledge of the English language: "I say money, money, money. I say twenty words in English. I say money, money, money and I say hot dog!"
On 15 July, Miranda appeared in a charity concert organized by Brazilian First Lady Darci Vargas and attended by members of Brazil's high society. She greeted the audience in English and was met with silence. When Miranda began singing "The South American Way", a song from one of her club acts, the audience began to boo her. Although she tried to finish her act, she gave up and left the stage when the audience refused to let up. The incident deeply hurt Miranda, who wept in her dressing room. The following day, the Brazilian press criticized her as "too Americanized".
Weeks later, Miranda responded to the criticism with the Portuguese song "Disseram que Voltei Americanizada" ("They Say I've Come Back Americanized"). Another song, "Bananas Is My Business", was based on a line from one of her films and directly addressed her image. Upset by the criticism, Miranda did not return to Brazil for 14 years.
Her films were scrutinized by Latin American audiences for characterizing Central and South America in a culturally homogeneous way. When Miranda's films reached Central and South American theaters, they were perceived as depicting Latin American cultures through the lens of American preconceptions. Some Latin Americans felt that their cultures were misrepresented, and felt that someone from their own region was misrepresenting them. Down Argentine Way was criticized, with Argentines saying that it failed to depict Argentine culture. Its lyrics were allegedly replete with non-Argentine themes, and its sets were a fusion of Mexican, Cuban, and Brazilian culture. The film was later banned in Argentina for "wrongfully portraying life in Buenos Aires". Similar sentiments were voiced in Cuba after the debut of Miranda's Weekend in Havana (1941), with Cuban audiences offended by Miranda's portrayal of a Cuban woman. Her performances were arguably hybrids of Brazilian and other Latin cultures. Critics said that Miranda's other films misrepresented Latin locales, assuming that Brazilian culture was a representation of Latin America.