Brazilian fruit exporters are facing major setbacks following the United States' decision to impose a 50% surcharge on Brazilian products, with mangoes, grapes, and açaí pulp, the country's top three fruit exports to the U.S., most affected. Together, these account for 90% of Brazil's fruit shipments to the American market, according to the Brazilian Association of Fruit and Derivative Exporters (Abrafrutas).
The tariff, expected to take effect in August, coincides with the mango harvest, creating immediate challenges. "Everything was ready for harvest, space booked on the ship, packaging purchased, protocols followed, everything lined up to start the season," said Luiz Roberto Barcelos, institutional director at Abrafrutas. Around 70,000 tons of mangoes had been contracted for export to the U.S. This volume must now be redirected to the European or domestic market, both of which are already well supplied, triggering concerns about oversupply and falling prices. "That will definitely push prices down," Barcelos said.
Some producers are already weighing whether to skip harvesting altogether, as the cost of operations may outweigh potential returns. The uncertainty surrounding the duration of the tariff is also discouraging future investment. "With a 50% tax, Brazilian fruit is practically unmarketable," Barcelos stated.
Following mangoes, grapes from the São Francisco Valley, which begin harvest in mid-November, are expected to be the next casualty. In 2024, 26.13% of Brazil's grape exports went to the U.S., while 31% of açaí pulp shipments were also U.S.-bound. Combined, grapes and açaí generated US$89 million in U.S. revenue last year. Mango exports to the U.S. brought in an additional US$45.8 million, representing 13% of Brazil's total mango export value.
Avocados, though not yet shipped, are also affected. Negotiations to open the U.S. market to Brazilian avocado exports are now considered stalled due to rising trade tensions. "Things were already going badly because the U.S. had been pressuring Brazil to open its market to American ethanol. Now everything is on hold," Barcelos noted.
With no backup plan in place, the industry is relying on diplomatic efforts to reverse the decision. "We hope that dialogue can overcome any trade friction and that there will be a review and revocation of this possible tariff implementation," said Valeska Oleiveira Ciré, Brazil country manager for the International Fresh Produce Association (IFPA). "We're pursuing dialogue and working to inform both governments about the implications of this decision. On the other side, American consumers also expect to continue buying mangoes at competitive prices."
Source 1: Agribusiness
Source 2: DatamarNews
