U.S. importers seek exemption from Brazilian coconut water tariffs

U.S. importers have been urging the Office of the United States Trade Representative (USTR) to review tariffs imposed on certain Brazilian products. Submissions attached to the investigation launched by the agency against practices by Brazil argue that the “tariff hike” will raise costs for both American businesses and consumers. Meanwhile, local producers are seeking to capitalize on the dispute to advocate for increased access to the Brazilian market for U.S. pork.

The Vita Coco Company, a U.S.-based beverage firm listed on Nasdaq, has requested a tariff exemption for Brazilian coconut water. The company, which has been importing the product for 20 years, argues that the U.S. climate does not allow sufficient domestic cultivation to meet internal demand.

“Coconut water is a natural, perishable product not commercially grown or produced in sufficient quantities in the United States. This represents a special situation in which imposing tariffs would not protect American producers, but instead raise costs for businesses and consumers,” the company said in a filing to the USTR.

In addition to Brazil, Vita Coco sources coconut water from the Philippines, Indonesia, Sri Lanka, Vietnam, Malaysia, and Thailand. “Brazil, in particular, plays a key role in supplying high-quality, sustainably produced coconut water to the U.S. market, and is especially well-positioned to export economically to the East Coast,” the filing states.

The United States is Brazil’s main export market for coconut water. In 2024, Brazilian producers shipped 49,900 tonnes to the U.S., roughly 95% of the 52,700 tonnes exported that year. The product is industrially packaged and shipped primarily by companies based in northeastern states, including Ceará, Bahia, Paraíba, and Alagoas.

Vita Coco stated that the 50% tariffs would drive up consumer prices and limit Americans’ access to healthier hydration options. The company added that the measure would harm small and medium-sized food and beverage companies, retailers, and healthy food businesses, while threatening jobs across the supply chain. “These costs are inevitably passed on to U.S. consumers,” the filing warned.

“Excluding coconut water from these tariffs aligns with the same logic applied to other tropical products, such as orange juice, in the most recent tariff announcement regarding Brazil. It is similar to discussions about coffee, cocoa, and palm oil under other trade frameworks – none of which are commercially produced in the U.S. and all of which support American businesses and consumers through imports,” the document, signed by company legal advisor Alison Klein, added.

The investigation, initiated on July 15, will accept submissions until August 18. The Brazilian Confederation of Agriculture and Livestock (CNA) is expected to present formal arguments on behalf of the country’s producers. The federal government has also pledged a “robust defense” of Brazil.

The case was opened under Section 301 of the Trade Act of 1974 and covers a range of issues, including Brazilian practices contested by the U.S. in areas such as digital trade, preferential tariffs, intellectual property protection, ethanol market access, enforcement of anti-corruption laws, and illegal deforestation.

Source: Globo Rural

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