U.S. President Donald Trump has announced plans to implement a 50% tariff on all Brazilian products starting August 1. This development poses challenges for Brazil's citrus industry, as the United States is the destination for 42% of its exported orange juice, valued at $1.31 billion in the last season.
Grower Fabricio Vidal, operating in Formoso, Minas Gerais, noted, "You are not going to spend money to harvest and not have anyone to sell to," reflecting concerns over potential market access issues. The impending tariff has already contributed to a decline in Brazilian orange prices, which dropped to 44 reais ($8) per box, according to the Cepea index from the University of São Paulo.
Ibiapaba Netto, head of the orange juice exporter lobby CitrusBR, remarked, "As the day approaches in which tariffs will come into effect, anxiety increases about what might happen." The situation highlights the uncertainty facing greenhouse growers and exporters, as trade policies impact market dynamics.
Source: Reuters
