INSUBCONTINENT EXCLUSIVE:
trade imbalance, with potential repercussions for the ethanol market and broader United States -Brazil trade relations.The United States ,
which applies only a 2.5% tariff on Brazilian ethanol, imported over $200 million worth of the product from Brazil in 2024 but exported just
$52 million in return.This disparity reflects a significant decline in trade since 2018, when United States ethanol exports to Brazil
face limited domestic demand growth due to factors like fuel efficiency and electric vehicles
United States Retaliation Amid Trade Disputes
(Photo Internet reproduction)Federal agencies will review trade policies and propose adjustments by April 1, potentially giving Brazil time
While the tariffs are not immediate, they could disrupt industries reliant on Brazilian sugarcane ethanol, such as sustainable aviation fuel
(SAF), valued for its low carbon footprint.Brazilian officials criticized the move as one-sided, highlighting United States restrictions on
sugar imports as a counterpoint
Energy Minister Alexandre Silveira called for broader negotiations to ensure fairness across all sectors.The ethanol trade has already
Whether these tariffs will restore balance or deepen trade tensions remains uncertain.However, they underscore growing challenges in global
trade policy that could affect investors, policymakers, and industries reliant on international markets.
