Brazil warns of orange juice shortages as tariffs loom

A planned 50% tariff on all Brazilian imports, set to take effect on August 1, could severely damage Brazil’s citrus industry. Farmers and juice processors warn that the new levy may make it unprofitable to harvest oranges, with some considering leaving fruit to rot in the fields.

Brazil currently supplies 42% of the orange juice consumed in the U.S., a trade worth $1.31 billion. But with orange prices already falling — down nearly 50% from last year — many growers are bracing for further financial strain. "You won’t harvest if there’s no one to sell to," said Fabricio Vidal, an orange grower in Minas Gerais.

The tariff would also affect U.S. consumers, as Brazil provides half of all orange juice sold in America. With domestic production at a 50-year low, the U.S. now relies on imports for 90% of its orange juice supply.

Industry experts say Brazil, which produces 80% of the world’s orange juice, can’t be easily replaced. The new tariff would raise the current U.S. import duty from $415 per ton to a staggering $2,200 per ton, potentially disrupting the entire supply chain.

source: reuters.com

photo: czapp.com