Brazilian ethanol is quoted by Trump in the announcement of reciprocal tariffs

by Andrea
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US President signed last Thursday (13) a memorandum to create new rates for imports from all countries with the same tariffs that are charged from US exporters

EFE/EPA/SAMUEL CORUM/POOL
Last year, the US was the second largest buyer of Brazilian ethanol, behind only South Korea

In a new invested, the president of the United States, signed last Thursday (13) memorandum to create new rates for imports from all countries with the same tariffs that are charged to US exporters, increasing the fears of a global trade war. The White House cited as an example of this tariff disparity the Brazilian ethanol.

As They will be imposed individually, country per country, after study commissioned by the Department of Commerce, and are expected to take effect on April 2. According to the newspaper Washington Postin conversation with journalists during Trump week, he mentioned that his country could sell more cars to Europe, motorcycles to India and also meat and dairy to Brazil.

In the case of Brazilian renewable fuel, according to the White House, “the on ethanol is only 2.5%”. “Even so, Brazil charges US ethanol exports a 18%rate. As a result, in 2024 the US imported more than $ 200 million in ethanol in Brazil, while the US exported only $ 52 million in ethanol to Brazil, ”says a document that accompanied the memorandum.

“US tariff over ethanol is only 2.5%. Even so, Brazil charges US ethanol exports an 18%tariff. As a result, by 2024, the US imported more than $ 200 million in ethanol in Brazil, while the US exported only $ 52 million in ethanol to Brazil, ”the US president said in a document released after the memo announcement on reciprocal tariffs.

Last year, the US was the second largest buyer of Brazilian ethanol, behind only South Korea. The country, however, has reduced its purchases from Brazil. In 2024, it imported 309.7 million cubic meters of Brazilian ethanol, equivalent to 16.3% of the total board. In 2019, this same volume had been 1.1 billion cubic meters, or 63% of the total, according to data from the Sugarcane Industry Union (Unica).

For years, American producers and manufacturers press Brazil to reduce this import rate. The rate was zeroed in the Bolsonaro government in 2022, but has now resumed the Lula administration. Brazil asks as a counterpart increase in Brazilian sugar access to the US market – today limited to an annual quota.

After yesterday’s announcement, Brazilian ministers again said that the willingness is to negotiate with the US government, such as the posture adopted after Trump announced 25% overflow for steel and aluminum.

In practice, Trump’s decision ends lower rates on most US -bought items in a policy that allows Americans to access cheaper products around the world. Asked if the prices of these items can rise, Trump replied that “a little in the short term,” but should fall in the following. “It’s fair to everyone.”

*With information from Estadão Content
Posted by Victor Oliveira

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