Brazil’s orange juice export sector could rack up losses of R$1.54bn (US$285mn) under Trump’s new tariff regime, according to industry body CitrusBR.
This figure includes the impact of the 10 per cent tariff on orange juice, estimated at US$103.6mn (R$566.7mn), and the effect of a 50 per cent tax on orange juice byproducts – which generated US$177.8mn (R$973.6mn) in the last harvest, Fruitnet informs.
The 50 per cent tariff applies to byproducts such as orange cells and essential oils, which are responsible for aroma, and are used to reconstitute orange juice, among other applications.
Orange juice byproducts are widely used by both the beverage and cosmetics industries. In the US, about 58 per cent of juice consumption consists of reconstituted juice, which is made from a concentrate that is later mixed with water.
The figures were calculated based on the volume recorded by the Secretariat of Foreign Trade (Secex/Mdic) in the 2024/25 harvest, CitrusBR said.
“Many of these products depend on ingredients such as citrus cells – orange segments – and essential oils responsible for aroma, and these inputs are overtaxed by 50 per cent, making operations unviable,” said CitrusBR’s executive director, Ibiapaba Netto, in a statement. “This could harm the consumer experience, affect American companies, and, consequently, impact the entire Brazilian supply chain.”
In addition to the tariffs, the sector is facing a sharp drop in international prices, a result of a 36 per cent increase in orange supply compared to the previous harvest, according to Fundecitrus.
Adding the effects of tariffs to the drop in prices, the sector’s total losses could exceed US$536mn (R$2.9bn) CitrusBR estimates. “Although the sector is relieved to have been included in the exception list, the impacts are significant, especially in a challenging market context like this year’s,” Netto stated.
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