Brazilian cachaça is beginning to disappear from the U.S. market after President Donald Trump imposed a 50% tariff on the product. Small producers report order cancellations and stalled negotiations, putting at risk a market that has become the most strategic outside Brazil.
The United States is the third-largest importer by volume, behind only Paraguay and Germany, but leads in the price paid per liter: 96% above the global average. In 2024, Americans bought 824,000 liters, generating US$3.6 million. For smaller companies such as Cachaça da Quinta, from the interior of Rio de Janeiro, half of production depended on these sales.
“It’s been a violent impact because it completely affects operations,” says producer Katia Alves Espírito Santo.
The Brazilian Cachaça Institute (Ibrac) estimates a 12% drop in export revenue and demands emergency measures. The Ministry of Agriculture is considering support through credit programs such as Brazil Soberano, which allocates R$40 billion to affected exporters.
For the sector, which brings together 1,200 producers and sustains 600,000 jobs, the surtax threatens the survival of the drink in the U.S. market.
