Consumers in the US will be faced with significant ratings in certain species, such as coffee or orange juice, if the Trump government insists on imposing 50% duty on imports from Brazil, as traders and financial analysts point out.
They estimate that the amount of duties decided by President Trump will lead to the interruption of Brazilian coffee flow to the United States, as neither US businesses nor Brazilian exporters will be able to bridge the gap that will emerge.
The US president announced yesterday Wednesday that from August 1st, it will increase duties on Brazilian products from 10% to 50%, despite the fact that the US has a $ 7.4 billion in transactions with Brazil.
About 1/3 of coffee consumed in the United States, the largest market for the beverage worldwide, comes from Brazil – which exported 8.14 million 60kg sacks last year, up 30% compared to 2023, according to the Brazilian Union of CCAFé exporters.
“A duty of such height will interrupt this flow. Brazilian exporters will not absorb him. Nor can US companies, “said Investment Advisor Michael Nagent. “In conclusion: Brazil will sell its coffee elsewhere and the US will buy coffee from other countries – Colombia, Honduras, Peru, Vietnam – but not in quantity or price of Brazilian,” he added.
At the same time, over 50% of orange juices sold in the US also comes from Brazil. South America also exports sugar, timber, oil and petroleum.
US Secretary of Commerce Howard Latnik had stated last month during a listening to Congress that some goods not available in the US, such as tropical fruits and spices, could possibly be excluded from duties, following negotiations with the countries.
The US produces only a small percentage of coffee consumed in the country, in farms in Hawaii and California. In recent years, dependence on orange juice imports has increased due to the widespread chlorination of citrus, cyclones and prolonged cold periods.
A recent report by the US Department of Agriculture predicted that orange harvesting in the US will fall to the lowest level of the last 88 years this year and therefore the production of orange juice will reach a historic low.
Source :Skai
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