Bota Posted on 2025-07-11 10:22:00

Tariffs against Brazil "burden" Americans - Coffee and orange juice prices expected to rise in the US

From Kristi Ceta

Tariffs against Brazil "burden" Americans - Coffee and orange juice

US consumers will face significant price hikes on food products such as coffee and orange juice if the Trump administration sticks to its plan to impose 50% tariffs on all imports from Brazil, traders and experts said.

They say the proposed import tax would stop the flow of Brazilian coffee to the United States, its largest buyer, as neither American producers nor Brazilian exporters would be able to bridge the price gap resulting from the tariff. US President Donald Trump raised the tax on Brazilian imports to 50% from 10%, despite the US running a $7.4 billion trade surplus with Brazil.

About a third of the coffee consumed in the US, the world's largest consumer of this beverage, comes from Brazil, which shipped 8.14 million 60 kg bags to the United States in 2024, more than 30% more than in 2023.

Meanwhile, more than half of the orange juice sold in the US comes from Brazil, while the South American country also sells sugar, wood products, oil and its byproducts.

U.S. Commerce Secretary Howard Lutnick said last month during a congressional hearing that some natural resources that are not available in the U.S., such as tropical fruits and spices, could be exempt from tariffs, depending on negotiations with the countries that produce and export them.

The United States produces only a small fraction of the coffee it uses, while it has become more dependent on orange juice imports in recent years, due to a sharp decline in domestic production. A report released by the U.S. Department of Agriculture earlier this year predicted that the U.S. orange harvest would reach its lowest level in 88 years during the 2024/25 season, while orange juice production would fall to a record low.

Brazil also exports a modest amount of beef to the U.S., and the tariff has been welcomed by U.S. cattle producers. In terms of energy, Brazil is the world's second-largest producer of ethanol, a biofuel made from sugarcane or corn. The South American country produced about 35 billion liters of ethanol in 2024, but exported less than 6%, of which only about 300 million liters went to the U.S.

 

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