Brazil says U.S. ethanol tariff would be irrational, calls for sugar talks

Published Feb 14, 2025

Tridge summary

Brazil's Mines and Energy Minister, Alexandre Silveira, has expressed that potential U.S. tariffs on Brazilian ethanol would be unreasonable and highlighted the history of ethanol and sugar trade between the two countries. The U.S. is considering ending low tariffs and increasing them to match other countries' rates, which could result in higher tariffs for major trading partners by early April. Brazilian Finance Minister Fernando Haddad has indicated willingness for tariff negotiations with the U.S. However, Brazil's high tariffs on U.S. ethanol exports and low sugar export quotas to the U.S. due to high tariffs could pose challenges in these negotiations.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

BRASILIA/SAO PAULO, Feb 13 (Reuters) - Brazil’s Mines and Energy Minister Alexandre Silveira said on Thursday that a possible U.S. tariff on Brazilian ethanol would be unreasonable, stressing that the two countries have historically traded ethanol and sugar together. His comments came after U.S. President Donald Trump moved to end decades-old low tariffs and raise them to match those of other countries. A White House fact sheet on the plan singled out Brazil’s ethanol tariffs as an example of unfair trade practices. “The U.S. tariff on ethanol is a mere 2.5%, but Brazil charges U.S. ethanol exports an 18% tariff. As a result, in 2024, the United States imported more than $200 million worth of ethanol from Brazil, while exporting only $52 million worth of ethanol to Brazil,” the document said on Thursday. Silveira argued that for Trump’s plan to be fair and reciprocal, as the Republican advocates, the world’s largest economy would need to eliminate import tariffs on Brazilian ...

Source: NoticiasAgricolas