Brazilian farmers fear 'world's best' juice at risk by Trump tariffs

RIO DE JANEIRO: Brazilian orange growers are increasingly worried about the impact of trade tensions between Brazil and the U.S.

AI Brief

Brazil's farmers fear major losses as Trump's 50% tariff could cripple orange juice exports, which supply 80% of global demand.
The US relies heavily on Brazilian juice, especially amid its lowest domestic production since 1970, risking supply shortages.
The tariff hike could raise costs for US brands like Tropicana and Pepsi, while Brazil faces fruit waste and economic strain.

Local farmers interviewed by Reuters in the State of Rio de Janeiro fear the tariffs could severely affect Brazil's prominent juice exports and are calling for urgent negotiations to protect their products.

President Donald Trump's proposed 50% tariff on all Brazilian products, effective August 1, could devastate Brazil's citrus belt. Farmers are facing plummeting prices, slowed harvests, disrupted schedules, and the possibility of leaving fruit to rot due to escalating trade tensions.

Brazil is a major player in the global orange juice market, supplying 80% of worldwide sales, and brands like Tropicana, Minute Maid, and Simply Orange heavily rely on Brazilian juice.

The tariff threat coincides with a significant decrease in U.S. orange juice production, estimated at 108.3 million gallons for the 2024/25 harvest, marking the lowest output since 1970/71 and reducing domestic inventories to a five-decade low, according to the USDA.

The U.S. accounts for about 42% of Brazil's orange juice exports, valued at $1.31 billion for the season ending in June. Brazil supplies 70% of the orange juice imported by the U.S., and the new tariff would increase the duty from $415 per ton to a staggering 533%, posing challenges for U.S. companies like Coca-Cola and Pepsi.