Image: CitrusBR

Brazil: Orange juice exporters anticipate serious losses due to new US tariffs

The National Association of Citrus Juice Exporters (CitrusBR) stated that Brazil’s orange juice export sector estimates losses of €500 million, despite the product being excluded from the 50 percent tariff imposed by the United States.

Brazil is the world's leading producer and exporter of orange juice and managed to have its product included among the nearly 700 products excluded from the tariffs imposed by the US government.

However, according to a statement from CitrusBR, the losses are due to the economic impossibility of exporting citrus by-products, such as inputs for the beverage and cosmetics industries, which are subject to 50 percent tariffs.

During the last harvest, these by-products generated €150 million in revenue, with the United States as the main buyer.

In the United States, approximately 58 percent of juice consumption is reconstituted juice, a concentrate with 66 percent solids (a by-product) that, after import, is diluted with water to reach its natural proportion of 12 percent, the director of CitrusBR explained in the statement.

 

More articles