Here's your Forbes Daily Briefing for Tuesday, September 2nd.

Today on Forbes, Trump's tariff title wave could drown this coconut water juggernaut.

What do you do when 96% of your revenue comes from coconut water and 100% of your supply

comes from tropical countries targeted by Donald Trump with high tariffs.

This is exactly the situation confronting one of the nation's hottest small-cap companies today,

$516 million in revenue Vitococo of New York City, the leading maker of coconut water.

Its biggest source of coconuts has heretofore been Brazil, a country now squarely in the

crosshairs of a proposed 50% tariff, courtesy of the Trump administration. Its six other sources

for coconuts aren't much better. The Philippines, tariff 19%, Malaysia, 19%, Vietnam, 20%, Indonesia, 19%, Thailand, 19%, and Sri Lanka, 20%.

Still, you wouldn't know that Vitacoco was facing a Trump tariff nightmare given the company's

bullish tone, or its stock performance. Shares are up nearly 32% over the past 12 months, outperforming

many better-known consumer staples names. Even with the stock down roughly 5% year-to-date as

the broader market rallies, Wall Street is shrugging off Vitico's inevitable pricing pressure.

Co-founder and executive chairman Michael Curban insists, quote,

Brazil is really a non-issue for us if enacted.

We started working on reallocating our Brazil supply, which historically goes to the United

States, to supply Europe and Canada several weeks ago.

The main source of supply for Europe, meanwhile, the Philippines, Sri Lanka, and Malaysia

will now all shift to the U.S.

Kerbin says he doesn't expect to pass any further price hikes in the coming months,

but this may be wishful thinking if Trump doesn't back away from his harsh tariffs on tropical

countries.

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