How a 50% tariff on Brazilian imports could raise the cost of acai bowls and smoothies

Port Washington resident Nina Atkinson is slightly troubled that a potential tariff on acai products from Brazil could cause a dent in her wallet.

But as the 43-year-old ordered an acai bowl Tuesday from Açaí Ya Again in Roslyn, where the price of acai bowls ranges from $13.50 to $16 depending on toppings, she said a price increase could be worth it.

“I understand that they have to raise prices because of the tariffs," said Atkinson, a frequent patron at the small stand nestled inside Delicacies Gourmet deli. "I’m not happy about it but I still want to support their business."

Too much of a price increase, though, she said, might mean “maybe you just can’t get it as much as you like.”

“I would still eat it if it went up a dollar or two," she said.

Long Islanders like Atkinson who have an acai habit could end up paying more, experts say, if a trade deal between the United States and Brazil, which is facing a 50% tariff on its exports, is not reached by Friday. Almost all of the acai pulp sold in the United States comes from Brazil, according to Reuters, and a 50% tax hike would likely trickle down to Long Island businesses that could either absorb the costs or pass them on to consumers who have already been facing elevated prices, experts said.

Some local businesses said they are hoping to mitigate price increases. 

Acai, a grapelike fruit native to the rain forests of South America touted for its antioxidant benefit, is a key ingredient in many delicacies offered at hundreds of restaurants and fast casual eateries that have boomed in popularity over the past decade, including on Long Island. Offerings might include an acai bowl topped with protein or smoothies blended with the fruit and nuts.

Production of the berry grew to nearly 2 million metric tons last year from around 150,000 tons over a decade ago, according to data from Brazil's statistics agency IBGE cited by Reuters.

President Donald Trump’s threat to boost import taxes by 50% on Brazilian goods, announced early July, could also drive up prices of coffee and orange juice — two other staples of the American diet, according to The Associated Press.

Here's what to know about how the 50% tariff could potentially impact acai costs.

When will the tariffs kick in?

Tariffs on goods from Brazil, as well as countries including Canada, Mexico and South Korea, are set to go into effect on Friday.

Trump linked the import tax to the trial underway in Brazil of his ally, the country’s former President Jair Bolsonaro, which he called a “witch hunt.”  Brazilian President Luiz Inácio Lula da Silva said last week that his government has not been successful in trying to negotiate a deal. Earlier, he noted that the U.S. has had a trade surplus of more than $410 billion with Brazil over the past 15 years. 

How are Long Island business preparing for higher costs?

Paul Gucciardo, chief operating officer of SoBol, a Patchogue-based chain of nearly 80 acai bowl restaurants along the East Coast — including 27 on Long Island — said the business is hoping to leverage its size and buying capacity to negotiate with its suppliers to "keep the price where it is.”

Gucciardo said his business, founded in 2012 on the Island, has been stocking up on acai to lock in lower prices as a preventive measure.

“We have not taken on an increase from our suppliers at this point," he said.

“We’re going to try our best to not increase our consumer prices,” he said.

Yolanda Fuentes, an owner of family-run Açaí Ya Again in Roslyn, said the mom-and-pop shop's acai supplier notified them a month ago that price increases were on the table.

Fuentes, whose family opened the acai and smoothie shop about a year ago, said the business was hoping to keep prices the same but has been going back and forth on how to handle the impact of tariffs.

If the business does have to raise prices, she said, the shop might consider an additional $1 charge on its bowls.

“We’re debating on whether there should be an increase or not,” Fuentes said. “We still want to deliver fair pricing to our customers and also be competitive against other places.”

How much more will acai bowls, smoothies cost?

Long Island acai fans are “going to pay significantly more for the product,” said Thomas Cook, managing partner of Blue Tiger International, an East Moriches-based international trade and supply chain consultancy. “It’s going to be much more difficult to obtain at the end of the day," Cook added.

Cook said because fruit is a commodity, unlike industrial products where manufacturers and their wholesalers can sometimes eat increased costs, the 50% tariffs are likely to be applied directly to the end price consumers pay.

“Those costs get passed directly onto the consumer,” Cook said. Assuming the average bowl contains $2 worth of acai pulp, as reported by Rolling Out, a $12 bowl would increase by at least a dollar. Rolling Out is an African American focused lifestyle and entertainment magazine.

How soon could Long Islanders expect to see higher prices?

Cook said it’s likely customers could start to see prices increase within 30 days of the tariffs going into effect.

“The cycle by airflight is two or three days and by ocean freight, it’s 20 days. There's also internal distribution,” he said. “The closer you are to gateways, such as the East Coast, the west coast of the gulf, you’ll see the impact sooner.”