The United States government has decided to exclude Brazilian orange juice from a planned tariff increase, a measure that brings relief to the Brazilian citrus sector. Brazil supplies around 60% of the total orange juice consumed in the U.S.
The reduction in U.S. juice output in recent years, particularly in Florida, has increased the vulnerability of the domestic production chain. In this context, the proposed 50% tariff could have resulted in product scarcity, higher prices, and logistical challenges. These potential impacts were among the reasons orange juice was removed from the list of products subject to the new tariff.
For Brazil, the exemption helps maintain competitiveness in its most important export market and prevents potential revenue loss. In the domestic market, this development may prompt industry participants to negotiate new contracts for the 2025/26 orange season, potentially increasing liquidity in the sector.
Source: CEPEA