Report: Brazil may reduce ethanol import taxes as a nod to Trump

The newspaper O Globo, citing reliable sources, reported that the Brazilian government was considering reducing import taxes on ethanol as a means to reduce inflation and appease U.S. president Donald Trump.

The report stated that Brazil hopes to try to convince the U.S. Government to make an exemption for the Latin American country in the recently announced 25% tariffs on aluminum and steel imported.

The Brazilian ministry of industry and commerce did not respond immediately to a comment request.

The White House has released an a

Fact sheet

Citing Brazil's ethanol tax as an unfair trade practice. The energy and mining minister at the time said that the potential U.S. tax on the fuel was unfair.

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The minister said that ethanol and sugar are usually negotiated together and the United States has a sugar tariff.

Geraldo Alckmin, the Brazilian vice president, was reportedly scheduled to speak with U.S. Commerce secretary Howard Lutnick Friday about tariffs. (Reporting and editing by Isabel Teles, Gabriel Araujo, and Sarah Morland).

(source: Reuters)