Brazil Criticizes U.S. Tariff Plan on Ethanol Trade

Brazil's Energy and Mining Minister Alexandre Silveira has slammed the U.S. decision to raise ethanol tariffs, calling it unreasonable and unfair. His statement follows U.S. President Donald Trump's move to end long-standing low tariff rates, citing Brazil’s 18% tariff on U.S. ethanol compared to the U.S.’s 2.5% tariff.

A White House fact sheet revealed that in 2024, the U.S. imported over $200 million in ethanol from Brazil while exporting just $52 million to the South American nation. The administration argued that the tariff hike aligns with Trump’s push for fairer trade deals.

Silveira, however, contended that true reciprocity would require the U.S. to drop tariffs on Brazilian sugar. He warned that Trump’s policy would harm global trade relations and potentially backfire on the U.S. economy.

Although the policy has no immediate effect, higher tariffs could be implemented by April, sparking trade negotiations with multiple countries.