Trade tensions between the United States and Brazil could have significant implications for the ethanol industry. The U.S. Trade Representative (USTR) has proposed a 25% tariff on a range of Brazilian imports after an investigation concluded that Brazil has discriminated against U.S. ethanol and other American goods and services.
The proposal stems from longstanding concerns over Brazil’s treatment of U.S. ethanol exports. According to U.S. Trade Representative Ambassador Jamieson Greer, Brazil’s tariff policies have created an uneven playing field for American producers for more than a decade.
Greer pointed to what he described as an unfair tariff regime that has affected U.S. ethanol exports since 2010. While Brazil previously offered more balanced treatment, the country ended that approach in 2017 and reinstated a steep 18% tariff on U.S. ethanol in 2024.
U.S. Ethanol Trade Dispute With Brazil Intensifies
The proposed tariffs are part of a broader effort by the administration to address what it views as unfair trade practices and improve market access for American products.
“We need to have leverage, and if we need to gain leverage by taking investigatory actions or other actions, we’ll do that,” Greer said. “It’d be much better to do this on a negotiating basis, but we’ll do whatever we need to do to try to fix it.”
Greer’s comments reflect the administration’s stated goal of pursuing greater reciprocity in international trade relationships while expanding opportunities for U.S. producers. Ethanol has been a particular point of contention because Brazil represents an important market and competitor within the global biofuels sector.
Industry stakeholders will be closely monitoring the situation, as any changes to tariff structures could affect ethanol trade flows, export opportunities and pricing dynamics for producers on both sides of the dispute.
Proposed Tariffs on Brazilian Imports Face Public Review
Before any final decision is made, the USTR plans to hold a public hearing on July 6 to gather feedback on the proposed measures. The hearing will help determine whether the tariffs move forward and what products could ultimately be affected.
While ethanol remains at the center of the dispute, the proposed actions could extend to a broader range of Brazilian imports. The outcome could influence trade relations between the two countries and shape future negotiations aimed at resolving longstanding concerns.
For agricultural producers, particularly those connected to the ethanol industry, the developments represent another reminder of how international trade policy can directly affect market access and competitiveness.
Hear more about the proposed tariffs, the ethanol trade dispute with Brazil and what it could mean for U.S. agriculture by listening to the report below.