Brazil calls for sugar talks after saying US ethanol tariffs would be unreasonable

Brazil's Energy and Mining minister Alexandre Silveira stated on Thursday that any potential U.S. Tariff on Brazilian Ethanol would be unreasonable. He emphasized that historically, the two countries had negotiated sugar and ethanol trade together.

Donald Trump, the U.S. president, had recently raised tariffs to bring them in line with other countries. In a White House factsheet on the plan, Brazil's ethanol taxes were cited as an unfair trade practice.

"The U.S. Tariff on Ethanol is only 2.5%. Yet Brazil charges U.S. exports of ethanol an 18% duty." In 2024, as a result of this, the U.S. will import over $200 million worth of ethanol from Brazil, while only exporting $52 million.

Silveira said that in order for Trump's plan, as advocated by Republicans, to be fair and reciprocal the world's biggest economy would have to eliminate import tariffs of Brazilian sugar.

"The measure taken by President Trump is unreasonable as it does not allow for greater Brazilian sugar exports into the U.S. He said that this type of decision would harm global multilateralism, and have negative effects on the U.S. economic system.

Trump's announcement may not have an immediate impact, but it could lead to higher tariffs on major trading partners as early as April. This would spark negotiations with dozens countries in order to reduce trade barriers and tariffs. (Reporting and editing by Sarah Morland; Marcela Ayres, Andre Romani)

(source: Reuters)