Brazilian exporters of orange juice byproducts face a projected revenue loss following the introduction of a 50% tariff by the United States on several Brazilian products in early August, according to industry trade group CitrusBR.
CitrusBR estimates the economic impact could reach 1.54 billion reais (US$285.45 million). This includes the effect of the 50% tariff on orange juice byproducts and a 10% duty on orange juice itself.
Orange juice byproducts are used extensively in the beverage and cosmetics industries. In the United States, about 58% of juice consumption consists of reconstituted juice, which is produced from concentrate and then mixed with water.
The 50% tariff applies to byproducts such as orange cells and essential oils, which are key for aroma and are used to reconstitute orange juice, among other applications, CitrusBR said.
Source: Reuters