CitrusBr says cost to Brazilian exporters could rise 80%
04/08/2025
The tariff hike announced by U.S. President Donald Trump is expected to cost Brazilian orange juice exporters more than half a billion reais. According to CitrusBR, which represents exporters Cutrale, Citrosuco, and Louis Dreyfus, the new 10% tariff on the commodity could add $100 million per year in taxes for Brazilian companies.
The additional tariff, unveiled last week, targets a range of Brazilian products.
CitrusBR’s estimate assumes Brazil will export around 235,500 tonnes of orange juice to the U.S. during the 2024/25 harvest season. The U.S. currently accounts for 37% of Brazil’s total orange juice exports.
Data from the Foreign Trade Secretariat (SECEX), compiled by CitrusBR, show that between July 2024 and February 2025, Brazil shipped 207,200 tonnes of frozen concentrated orange juice (FCOJ 66 Brix) to the U.S., generating $879.8 million in revenue.
The new tariff would be in addition to existing charges, including a $415-per-tonne duty on FCOJ at 66 Brix concentration. That charge alone amounted to $85.9 million in 2024, according to CitrusBR.
Taken together, the existing and new tariffs could push the total annual tax burden on Brazil’s orange juice exports to about $200 million, or roughly R$1.1 billion.
“This 10% tariff leads to an over 80% increase in costs. We’re jumping from $415 per tonne to nearly $800, while Mexico—our main competitor in the U.S. market—pays zero thanks to its free trade agreement with the U.S.,” said Ibiapaba Netto, CitrusBR’s executive director, in an interview with Valor.
Despite the headwinds, CitrusBR said that “Brazilian companies continue, individually and in line with their commercial strategies, to supply the U.S. market with high-quality orange juice.”
“The industry regrets, however, that the decision was made without taking into account the long-standing complementary relationship between Brazilian production and Florida’s processing industry, as well as long-term partnerships with U.S. bottling companies,” Mr. Netto added.
Last year, the U.S. was the destination for 32.12% of Brazil’s orange juice exports.
*By Fernanda Pressinott, Globo Rural — São Paulo
Source: Valor International