SAO PAULO: Brazilian exporters of orange juice byproducts will suffer a major revenue decline from a hefty 50% U.S. tariff imposed on many of the country’s products in early August, industry trade group CitrusBR said on Tuesday.
The economic impact can amount to 1.54 billion reais ($285.45 million), including from the 50% tariff on orange juice byproducts and a 10% duty on the juice itself, CitrusBR said in a statement.
Orange juice byproducts are widely used by both the beverage and cosmetics industries.
In the United States, for example, about 58% of juice consumption consists of reconstituted juice, which is made from a concentrate that is later mixed with water.
The 50% tariff applies to byproducts such as orange cells and essential oils, which are responsible for aroma, and are used to reconstitute orange juice, among other applications, CitrusBR said.
($1 = 5.3949 reais) – Reuters