Brazil’s organic sugar exports still weighed down by tariffs

Six months after the start of U.S. tariff measures against Brazil, which remain in force for part of the country’s overseas sales, exporters of organic sugar are still struggling to find viable alternatives to ship the product abroad. Previously exempt from duties when entering the United States, Brazilian organic sugar is now, in practice, facing a tariff burden of close to 100%.

The chart below uses Datamar’s DataLiner data to illustrate sugar shipments, measured in tonnes, from Brazil. Readers may request a demo for further insights below.

Sugar Exports | 2023 – 2025 | WTMT

Source: DataLiner (click here to request a demo)

U.S. President Donald Trump has hit Brazilian organic sugar on two fronts. In addition to the 40% surcharge that came into effect in August 2025, combined with the 10% duty applied by the United States on exports from all countries, the product also lost access to the so-called “Specialty Quota” for organic sugar. As a result, exporters no longer benefit from the exemption on the US$327-per-tonne tariff that previously applied to a quota of 240,000 tonnes.

The United States accounts for a significant share of global consumption of organic products. The use of organic sugar is mandatory in certified organic processed foods such as granola, cereal bars and yogurts, meaning that without it, U.S. manufacturers cannot market these products as organic.

Native, part of the Balbo Group, began seeking alternative markets and was starting to gain traction in Mexico until a setback at the end of the year. On December 31, the Mexican government announced the removal of import tariff exemptions for several products, including sugar.

“We managed to ship ten containers to Mexico and there were requests for more, but we will no longer be able to export,” said Leontino Balbo Júnior, vice president of Native Produtos Orgânicos. Following the decision, Mexico began charging a 200% tariff on organic sugar.

According to Balbo, the company’s push into the Mexican market began in 2025, when it encouraged a U.S. distributor to open operations in the country. The distributor hired Mexican staff who were trained by Native, and sales had started to show results. The company had expected to export up to 3,000 tonnes by June 2026. By comparison, U.S. consumption of organic sugar is estimated at around 300,000 tonnes per year.

At present, Canada is the only alternative market the company has been able to rely on, as Canadian food manufacturers have received more orders from U.S. clients seeking to supply demand in the United States. Even so, volumes remain limited. Native, which previously sold around 6,000 tonnes of organic sugar annually to Canada, now expects shipments to rise to about 9,000 tonnes per year.

With no other major market available, the company is currently holding around 30,000 tonnes in inventory, a high level for a business that had expected to export 40,000 tonnes to the U.S. in the current season and clear stocks by April. “The distributor does not have the cash to buy. There is no working capital,” Balbo said.

Another Brazilian organic sugar exporter, Jalles Machado, is still managing to sell to the United States. “We continue selling to our customers because the United States needs the product. But the cost is being passed on to retail,” said Rodrigo Penna, the company’s chief financial officer.

According to Penna, the company is trying to expand sales to other markets, but without significant breakthroughs so far. “The tariff makes sugar more expensive for consumers and does not help U.S. producers, who do not produce organic sugar,” he said.

Source: Globo Rural

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