Grapes bear brunt of new U.S. tariffs on Brazilian fruit

Most Brazilian fruit exported to the United States was exempted from the additional 25% tariff announced by the Office of the U.S. Trade Representative (USTR) on Wednesday, July 15. Grapes, however, are the most commercially significant fruit left off the exemption list, according to Margarete Boteon, a researcher at the Center for Advanced Studies in Applied Economics (Cepea).

The immediate impact is likely to be more limited than in other industries, Boteon said, because Brazilian grape exports to the United States had already been losing competitiveness since an earlier round of tariffs.

“The United States’ share of Brazilian grape exports had already fallen significantly,” she said in a statement. “Although the U.S. market provided an important sales window at the beginning of the second half of the year, Europe remains the main destination for Brazilian grapes.”

The overall outlook is relatively favorable for Brazil’s fresh produce industry. Exemptions covering most tropical fruits, citrus products, orange juice and other processed products should limit the measure’s direct impact on the sector.

“Even so, the industry will need to closely monitor the final publication of the tariff codes, particularly for grapes and other products that remain outside the exemption list,” Boteon said.

Exporters assess alternatives

According to the Brazilian Association of Fruit Producers and Exporters, Abrafrutas, the additional 25% duty will raise the total tariff on Brazilian grapes to 35%, significantly reducing their competitiveness in the U.S. market.

Melons and watermelons were also included among the products subject to the new duties, although Abrafrutas expects a smaller impact because of the profile and volume of their exports to the United States.

The association said it is advising growers and exporters on how to respond to the new trade environment and is working to limit losses across the industry.

Options under consideration include diversifying export destinations and adopting new commercial strategies to keep fruit moving to market.

Brazil exported approximately $41.5 million worth of grapes to the United States in 2025, equivalent to around 14,000 metric tons.

Although Brazilian grape exports to the United States are concentrated mostly in the second half of the year, the figures for the first five months of 2026 already point to a strained trade relationship with the North American country. Year to date, Brazil shipped 46 TEUs of grapes to the United States, down 79.6% year over year.

Grape Exports to the United States | Jan 2023 – May 2026 | TEUs

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Source: Globo Rural

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