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US Tariffs on Orange Byproducts Eased: Citrus Industry Sees Relief as Key Tariffs Lifted, But Some Costs Remain

US Eases Tariffs on Orange Byproducts, Bringing Relief to Citrus Industry

The National Association of Citrus Juice Exporters (CitrusBR) has expressed significant relief following the United States’ decision to remove a 40% tariff on various orange byproducts. This move, announced by U.S. President Donald Trump, is seen as a crucial positive development for the Brazilian citrus sector, which has been navigating complex trade relations.

The removal of this substantial tariff specifically impacts essential orange oil, terpene byproducts, and orange pulp. These products will now be exempt from the previously imposed 40% charge, a development that CitrusBR has actively championed. This adjustment is a welcome change for exporters who have faced increased costs.

However, it is important to note that while the 40% tariff has been lifted for these specific items, they will continue to be subject to a 10% tariff that was implemented earlier in the year. This ongoing tariff reflects broader trade retaliations, and its impact, while lessened, is still a factor for the industry. The information was disclosed by CitrusBR.

Key Orange Byproducts Now Tariff-Free

The specific orange byproducts that are now free from the 40% U.S. tariff include essential orange oil, terpene byproducts, and orange pulp. This exemption directly addresses a significant financial burden that had been placed on these valuable agricultural commodities. CitrusBR highlighted this positive change.

It is crucial to understand that not all orange-related products are fully exempt. CitrusBR clarified that products not explicitly listed among the exceptions, such as those under codes 3301.90.20 and 3301.90.30, which are commonly used for d-limonene and other non-specific essential oil fractions, will still be subject to the 40% tariff. This distinction is important for businesses to be aware of.

Reciprocal Tariff Exemptions Bolster Trade

This recent tariff adjustment follows closely on the heels of broader reciprocal tariff exemptions for a range of agricultural products. Less than a week prior, the U.S. and Brazil agreed to remove 10% tariffs on several agricultural goods. This included the full tariff codes for Brazilian orange juice, both in concentrated (FCOJ) and not-from-concentrate (NFC) forms.

Consequently, Brazilian orange juice has also been removed from the scope of the additional 10% tariff that was imposed at the beginning of the year as a trade retaliation measure. The exemption for orange juice became effective for shipments made starting November 13th, providing immediate relief for juice exporters.

Base Tariffs Remain a Factor

Despite the positive news regarding the removal of recent retaliatory tariffs, CitrusBR pointed out that a historical base tariff remains in place. The base tariff of US$ 415 per ton for FCOJ is still in effect. This is because this particular tariff is not connected to the more recent emergency measures or trade disputes that have been addressed.

The industry continues to monitor trade policies closely. While the reduction in tariffs on orange byproducts is a significant win, the ongoing base tariffs and the remaining 10% charge on some byproducts mean that the path to full trade normalization is still being navigated. The CitrusBR’s statement underscored these ongoing considerations for the sector.