US lovers of Amazon berry açaí to feel tariff pinch

By Marcelo Teixeira and Oliver Griffin

NEW YORK, July 27 (Reuters) - Bowls and smoothies made of the Amazon berry açaí have become ubiquitous in many cities across the United States, but consumers may think twice about shelling out after August 1 when a 50% tariff on imports from Brazil kicks in.

Nearly all of the açaí pulp sold in the U.S., as well as in Europe and Asia, where people have also developed a taste for the tangy fruit, comes from Brazil. If no trade deal is reached between the Trump administration and the Brazilian government, the bowls could cost significantly more at hundreds of shops from New York to Los Angeles.

"People already complain a bit about the price. If it gets more expensive, I guess it will become more of a luxury thing," said Ashley Ibarra, who manages a Midtown Manhattan store owned by Playa Bowls LLC, a New Jersey-based company with around 300 shops in the U.S.

With toppings like banana and granola, a bowl of açaí costs around $18 at Playa Bowls in New York.

Competitor Oakberry Inc., the world's largest açaí chain with 700 stores in 35 countries, sells a smaller portion at a nearby Manhattan store for $13.

Playa Bowls declined to comment on the tariffs, and Oakberry did not respond to a request for comment.

Açaí companies tout the product as an energy booster, a powerful antioxidant and a source of Omega-3 and other nutrients. The Food and Drug Administration said more research is needed to evaluate its possible health benefits.

"A friend introduced me to it one day, and I loved it, so I occasionally buy it," said Milan Shek, 50, who was having an açaí bowl mixed with cereals and fresh fruits one recent afternoon in New York.

With a large markup, he said he would probably eat it less often.

Brazil's production and exports of açaí have skyrocketed in recent years. The berry went from being a local delicacy in small towns in the state of Para where it is mostly grown, to a widely popular treat across Brazil. Soon, exports began to be sent to other countries.

Production increased from around 150,000 metric tons ten years ago to nearly 2 million tons last year, according to data from Brazil's statistics agency IBGE and the governments of Para and Amazonas.

The U.S. is the largest foreign buyer, followed by Europe and Japan.

Nazareno Alves da Silva, head of the Amazon Açaí Producers Association in Para, said companies were calculating how to absorb such a large cost increase in order to continue exports to the U.S. He wasn't optimistic.

"Right now, we still don't know how to do it. The numbers don't match," he said.

The trade would get too expensive for many U.S. importers, while Brazilian producers would be unable to cut prices enough to accommodate the tariff, he said, adding that producers would likely have to find other markets.

Even those without an açaí habit are likely to feel the pinch of the Trump administration's tariffs on Brazil.

The South American country supplies about a third of the coffee consumed in the U.S., as well as orange juice and beef.