Brazil in talks to expand U.S. sugar export quota

Published 2025년 3월 14일

Tridge summary

The Brazilian government is considering expanding its sugar export quota to the U.S. as a negotiating tactic in response to pressure from U.S. President Donald Trump to lower Brazil's tariff on American ethanol. The current quota stands at 146,600 tonnes, but the government has sought to increase this to between 300,000 and 400,000 tonnes. Any sugar exported above the quota is subject to an 80% import tax in the U.S. The negotiations are challenging due to the highly protected nature of sugar in the U.S. The government argues that expanding the sugar quota could provide compensation in ethanol negotiations.

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Original content

The Brazilian government has put the expansion of its sugar export quota to the U.S. on the negotiating table. A long-standing demand from the local sugar industry — Brazil is the world’s largest producer — the issue has gained momentum in Brasília as a potential bargaining tool in response to pressure from U.S. President Donald Trump to lower Brazil’s 18% tariff on American ethanol. It is reported by datamarnews. Currently, Brazil has a preferential sugar export quota of 146,600 tonnes exempt from U.S. import taxes, allocated among 39 companies in the country’s northeastern region. For several years, the government has sought to increase this quota to between 300,000 and 400,000 tonnes but has faced resistance. It is unclear whether the latest request remains within that range. In 2024, Brazil exported 876,700 tonnes of sugar to the U.S., generating nearly $440 million in revenue. Any amount exceeding the quota is subject to an import tax of about 80%. Produced in 26 U.S. ...

Source: UkrAgroConsult