Brazil’s fruit sector sees relief as U.S. ends tariff

The end of the tariff hike imposed by the U.S. government brought relief to the fruit and vegetable sector, one of the most affected by the United States’ 50% tax on imports from Brazil. The expectation is for a recovery and normalization of shipments to the U.S. market after three and a half months of declines in both volume and sales value. From August to October this year, mango exports to the United States fell by 40% in value compared with the same period last year. The data come from the Comex Stat, a federal government source. Brazilian exports of Brazil nuts fell 94%, and other agricultural products such as grapes, coffee, and ginger were also heavily affected.

“The removal of the tariffs in November opened the way to restoring the dynamics of bilateral trade. The U.S. market is strategic for Brazilian fruits, and the elimination of the charge creates room for a recovery in export flows. Now the sector can breathe and grow again. Without the surcharge, there is a greater possibility of shipping, more stable prices, and conditions to maintain production. For many producers, this is the difference between investing and stepping back. It is an opportunity to rebuild business relationships that were shaken and to put Brazilian fruit back on the shelves where it always had a strong presence,” says Ascenza Brasil’s country director, Renato Francischelli.

Renato notes that mango is an example of the impacts of the tariff on the fruit and vegetable sector. Between August and October 2024, Brazil exported 22,600 tonnes of mangoes to the United States. In the same period this year, 31,800 tonnes were exported, a 41% increase in volume. However, prices fell sharply. In the three months last year, mango was sold to the U.S. market for US$1.30 per kilo, and in the same period this year, the price fell to US$0.78 per kilo, a 40% decrease.

Although Brazil shipped 41% more mangoes to the U.S. during the three months of the tariff hike, revenue fell from US$29.4 million in 2024 to US$25 million this year. In the case of Brazil nuts, shipments this year were 94% lower in volume, with 21.6 tonnes shipped between August and October, compared with 367.6 tonnes exported in the same period last year.

Another affected segment was grapes, with a 67% decline in exports to the U.S. during the tariff period. From August to October 2024, 2,800 tonnes of grapes were shipped to the U.S., compared with 938.3 tonnes shipped in the three months this year. The price fell 15%, from US$3.77 per kilo last year to US$3.23 this year.

Coffee also lost volume. Exports to the United States fell 39.6% from August to October this year, compared with the same period in 2024. This year, over the three months, 56,600 tonnes of coffee were shipped to the U.S., while last year, 93,700 tonnes were sent. In value, prices between August and October this year were 38% higher, with revenue of US$428.3 million in 2024 (US$4.6 per kilo) and US$356.7 million this year (US$6.3 per kilo).

Exports of ginger fell 22% in volume in the three months of the tariff hike this year compared to the same period last year, from 3,600 tonnes sent to the U.S. in 2024 to 2,800 tonnes in 2025. Export value in this period fell 37%, from US$5.4 million in 2024 to US$3.4 million in 2025.

Even with the 50% tariff imposed by the United States on Brazil, Brazilian exporters maintained and even expanded fruit and vegetable shipments by opening new markets in Europe, Asia, and South America. In the case of mangoes, shipments to the U.S. were maintained despite reduced margins as a strategy to avoid high stocks, production losses, and the weakening of established commercial relationships.

“The tariff hike showed that Brazilian producers need to be prepared for movements not directly related to their production efficiency or consumer market demand, but which can suddenly change market access conditions and require rapid responses to preserve competitiveness and international presence,” says the country director of Ascenza Brasil.

Renato noted that a combination of the need for quick supply, commitments made with importers, a favorable exchange rate, and established logistics meant that many exporters accepted lower prices to avoid losing shelf space in the U.S., a defensive strategy to prevent greater long-term damage. With the tariff now removed, this market will gradually reposition itself, he points out.

International market on the rise

The imposition of the 50% tariff on all Brazilian products exported to the United States took effect on August 6 and was revoked on November 20. According to data from the Ministry of Development, Industry, Trade and Services, Brazilian exports to the U.S. fell 16.5% in August, 20.3% in September, and 37.9% in October. Even with U.S. restrictions, according to Agência Brasil, Brazil’s foreign sales grew 9.1% in October compared with the same month last year, setting a record for the month since the historical series began in 1989.

Source: Notícias Agrícolas

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