U.S. fresh produce imports from Brazil are subject to a 50 percent import tariff, which became effective on August 6, 2025. “Since it has only been into effect for three weeks, it is too early to assess the impact,” says Andrés Ocampo, CEO of HLB Specialties who brings in papayas from Brazil. “We do know there will be consequences because such a high price increase is difficult to offset,” he added. Tightening margins or creating efficiencies won’t be sufficient to make up for the increase. “We do what we can, but we won’t be able to absorb this price increase in full,” he said.
In the end, the impact of this tariff all depends on the consumer’s willingness to accept new pricing. It is going to take a couple more weeks to better understand the impact. Right now, summer break is coming to an end, which will result in consumer’s buying habits going back to a more normal pattern. “Papaya sales tend to go up after summer and we may see a more consistent trend by the second half of September. By that time, we can make a better assessment.”
Limited alternatives
HLB Specialties brings in the Samba and Golden papaya varieties from Brazil. Because of their smaller size, these are unique varieties that are difficult to be sourced from other origins. “While we have been looking at other origins for a suitable alternative, it is challenging to find product that matches the high quality and unique flavor profile of these Brazilian varieties.” Hawaii grows a similar variety but not to the scale Brazil does. “Our options of finding an alternative are truly limited,” Ocampo said.
The smaller papayas target a different demographic compared to the traditional, larger papayas. Large papayas are preferred by ethnic communities, particularly Asians and Hispanics. Smaller papayas on the other hand, are also consumed by ethnic groups, but have a following from non-traditional consumers like Caucasians as well. Households are getting smaller, resulting in a higher demand for smaller papayas. “For that reason, I am not sure if consumers are willing to switch to a more common large variety.”
Brazil’s share in imports
In the overall U.S. papaya import market, Brazil’s share is relatively small. “It’s a single-digit number,” commented Ocampo. “Because the varieties are so unique, papayas from Brazil are considered boutique items that are not being imported in huge quantities.” For HLB however, a significant portion of papaya import volume comes from Brazil.
Source: FreshPlaza
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