According to an industry expert, Leonardo Gonzalez Dellan, the orange growers might find themselves in the middle of the unfortunate trade wars that were recently started by the United States. Considering that the imports are cheaper, the consumption is not as high as before and the presence of trade tariffs, the industry could be facing trouble. As of the moment, the discussion between Justin Trudeau, Canadian Prime Minister, and Donald Trump, United States President, regarding the North American Free Trade Agreement is currently in full swing. At the same time, fruit producers that are based in Latin America are already preparing for the rocky road ahead.
American producers are also feeling the impact because the consumers in the country are not drinking as much orange juice as they used to. In fact it was published in a report that in 2001 the US consumption was about 5 billion liters and in 2016 the consumption has decreased significantly to only 2.8 billion liters.
Add the fact that there is stiff competition between the producers in Brazil that are considerably cheaper thus the imports have risen. In a recent development, the domestic orange growers in the United States have been ordered by the European Union to pay 25 per cent tariffs on all orange juice products that are coming from the country.
Leonardo Gonzalez Dellan, an expert in trading, said that President Trump will make a move in order to protect the welfare of the orange producers in the United States against its competition from Latin America which will eventually lead to another bout of trade wars.
Mr. Dellan added that as of current standing, Brazil is the leading orange juice supplier which negatively impacted the producers in Florida and California. The Trump administration will not just stand idly and watch it all unfold thus it is expected that a confrontation is soon to happen between the Brazilian growers and the US government. Despite the dip in the consumption, Leonardo Gonzalez Dellan said that the orange juice production is still considered to be a big business which could help in the overall economy of the country.