New US tariffs disrupt Brazilian furniture, South African citrus exports

New U.S. tariffs of up to 50 percent on Brazilian goods and 30 percent on South African exports are already battering industries reliant on the U.S. market, with Brazil's wood furniture and South Africa's oranges facing significant setbacks.

AI Brief

The US imposed up to 50% tariffs on Brazilian goods and 30% on South African exports, disrupting key industries.
Brazilian furniture makers and South African citrus growers warn of major losses and reduced US market access.
Companies are seeking new markets in Europe and Latin America but say replacing US demand will take time.

U.S. President Donald Trump on Wednesday signed an executive order implementing an additional 40 percent tariff on Brazilian goods, bringing the total tariff amount to 50 percent, the White House said in a fact sheet.

Daniel Lutz leads a furniture company in Sao Bento do Sul, Santa Catarina, southern Brazil, with a legacy spanning over 70 years. As a descendant of German immigrants, his family's dedication to furniture manufacturing has persisted through three generations, focusing on solid wood products that adhere to strict environmental protection standards demanded by European and North American markets.

Over the years, most of their products have been exported to the United States. Daniel said that raising the tariff to 50 percent not only dealt a blow to his company, but also hinders the economic growth of Santa Catarina, which is heavily dependent on exports.

"Last year, we sold 80 percent of products to the U.S. Now with the incoming 50 percent tariff, we expect U.S. orders to decline further. If the tariff persists, it'll be very hard for businesses like ours to tap into the U.S. market. We are expanding to new markets in Europe and Latin America. But it's difficult to replace the U.S. market in a short period of time. The tariffs will not only hurt my company, but also businesses in the whole industry. We try not to downsize our operation and workforce at the moment. But we might eventually have to deal with it," said Lutz.

Meanwhile, South Africa faces a 30 percent tariff on its exports to the U.S. starting Friday after the country failed to secure a trade deal before a deadline set by Trump.

Deon Joubert, special envoy for market access and EU matters of the South African Citrus Growers Association, said a substantial share of their oranges and 15 percent of mandarins, grown and treated specifically for the U.S. market, would face severe disruptions.

"A significant portion of their product, principally oranges, about 35 percent, and about 15 percent of their mandarins go to the U.S. and are explicitly produced, technically prepared and sprayed for the U.S. So that would significantly reduce their ability to continue with farms, pack houses and higher labor," said Joubert.