BRASILIA/SAO PAULO (Reuters) – Brazil’s Energy and Mining Minister Alexandre Silveira said on Thursday that a potential U.S. tariff on Brazilian ethanol would be unreasonable, emphasizing that the two countries have historically negotiated ethanol and sugar trade together.
His remarks came after U.S. President Donald Trump moved to scrap decades-old low tariff rates, raising them to match those of other countries. A White House fact sheet on the plan pointed to Brazil’s ethanol tariffs as an example of unfair trade practices.
“The U.S. tariff on ethanol is a mere 2.5%, yet Brazil charges U.S. ethanol exports an 18% tariff. As a result, in 2024, the U.S. imported over $200 million in ethanol from Brazil while exporting only $52 million in 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 sugar.
“The measure adopted by President Trump is unreasonable, as there is no mention of allowing greater Brazilian sugar exports to the U.S. This type of decision harms global multilateralism and will certainly have negative consequences for the U.S. economy itself,” he said in a statement.
Trump’s announcement has no immediate impact but could result in higher tariffs for major trading partners by early April, sparking negotiations with dozens of countries to reduce tariffs and trade barriers.
(Reporting by Marcela Ayres and Andre Romani; Editing by Sarah Morland)
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