U.S. consumers may encounter price escalations on food essentials like coffee and orange juice with the Trump administration's plan to impose 50% tariffs on Brazilian imports. The tariff increase from 10% was initiated despite the U.S. maintaining a $7.4 billion trade surplus with Brazil, as reported by the U.S. Census Bureau. More than half of the orange juice sold in the U.S. originates from Brazil. Increased dependence on imports is a result of diminished domestic production, notably in Florida, impacted by 'citrus greening' disease, hurricanes, and freezing events.
A U.S. Department of Agriculture report predicted the U.S. orange harvest would reach an 88-year low in the 2024/25 season, with orange juice production at a record low. Brazil also ships a modest quantity of beef to the U.S., and U.S. cattle producers have responded favorably to the tariff.
R-CALF USA commented, "We fully support this tariff on Brazil. Brazil's exports have contributed to the shrinking of our U.S. cattle industry. We need to rebuild and reduce our nation's dependency on imported food. This is a step in the right direction."
Source: BNN Bloomberg
