Brazil’s coconut water exporters warn U.S. tariffs strengthen rivals as shipments plunge

Coconut water exporters in Ceará are worried. The U.S. tariff hike led to business cancellations, and the executive order from the Donald Trump administration — which removes the “reciprocal tariff” of 10% on the product and on several other segments — does not ease the situation. That is what business leaders in the sector say.

“On the contrary, it got worse. Because the 10% was removed for everyone. So there are countries that are now at zero, and Brazil is at 40%. In other words, our competitors are now stronger,” says Rita Granjeiro, a member of the National Association of Coconut Producers (Aprococo).

Since August, when the additional U.S. tariff on Brazilian imports went into effect, exporters from Ceará have already failed to ship at least 1.5 million liters of coconut water.

Dikoko lost an order of 20 containers totaling 550,000 liters, says the company’s president, Raimundo Dias de Almeida. Since August, when the tariff hike began, exports to the United States have dropped more than 50%. And investments aimed at increasing the company’s presence in the country — considered the most mature and profitable market — were undone by the tariff.

Dikoko currently works with around 900 producers but is considering reducing that number. In addition to the tariffs, the businessman says the state government of Ceará’s rescue plan for affected sectors has not moved forward.

The measures were announced at the end of August by Ceará’s governor, Elmano de Freitas (PT). The plan includes the purchase of export credit (ICMS), a reduction in charges linked to the Industrial Development Fund (FDI), economic subsidies, and the purchase of food products.

However, the aid has not yet reached the coconut production chain, business leaders report. Raimundo Dias de Almeida, from Dikoko, says his request is still under review. Rita Granjeiro reports that no company has benefited from the plan.

When contacted, the Ceará State Treasury (Sefaz-CE) stated that it continues to receive and analyze requests for assistance from companies affected by the tariff increases. It also said that, so far, R$6.65 million has been distributed, including credit acquisition and economic subsidies.

The initial budget is R$20 million. However, the department notes that processing times may vary depending on the need for complementary documentation.

Regarding the purchase of food products by the state government, the Ceará Secretariat of Agricultural Development (SDA) reported that an amendment to the state decree was necessary to include companies in the coconut sector. The revision is currently at the Civil House and is expected to be published later this week.

Concern across the production chain
The president of the Ceará Agriculture Federation (Faec), Amilcar Silveira, is following the situation with concern. He recalls that the state had been increasing exports and that the U.S. market paid very well, despite a high level of dependence.

He notes that the federation has pressed the state government to respond to the coconut sector so that producers can remain in business.

“Producers are struggling with credit because of high interest rates. And if the sale price goes down due to the tariff hike, it’s very worrying. Because, generally, when the producer is squeezed on price, he stops harvesting the coconuts — sometimes even fertilizing his plantation. And the consequence of that is a drop in productivity,” he warns.

One such producer is Vandcarlos Lima, from Paraipaba on the coast of Ceará. He reports that he had to cut production in half because industry demand is no longer the same.

“Here’s the thing with the crop: every month you need to harvest all the coconuts. If you don’t remove the full crop, the fruit begins to dry. Later, that affects our production and causes a significant drop. But we are moving forward.”

In 2024, according to data compiled by the Executive Secretariat of Agribusiness of Ceará, 588.81 tonnes of coconuts were produced, with more than R$ 603 million in Gross Production Value (VBP).

As for exports, the value fell from US$ 11 million between August and October 2024 to US$ 8.7 million in the same period in 2025 — a decline of more than 20%.

Source: Globo Rural

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