US tariffs against Brazil are bitter pills for sugar and ethanol producers
Brazil's sugar and ethanol producers expressed their dismay on Thursday at the new 25% tariffs that the U.S. government imposed on Brazilian goods, citing a decline in the level of cooperation between the two countries.
According to the Union of the Sugarcane Industry and Bioenergy (UNICA), the U.S. exported 253 million liters worth $163 millions of ethanol in 2025. This makes the North American nation the second most important market for the sector after South Korea.
The U.S. exported 420,000 metric tonnes of sugar from Brazil in the same year. This is a significant drop from the 1,12 million tons Brazil shipped to North America in 2024.
UNICA issued a statement saying that the?decision ignores significant imbalances in the trade relations between the two nations. "Brazilian exports of sugar?remain under tariffs and restrictions on market access imposed by the United States. Brazil, however, maintains a policy that is non-discriminatory regarding ethanol." U.S. trade representative?Jamieson Grer justified the new tariffs of 25% on Brazilian products by citing unfair trade practices. Brazil has rejected this accusation.
Greer cited the U.S.'s current access to Brazil’s ethanol markets as one of his reasons. Brazil's imports from the U.S. of ethanol have decreased significantly in the last few years, according to USTR data.
UNEM, the Brazilian corn ethanol trade association, said in a statement that the tariffs of the South American nation were compliant with World Trade Organization regulations, and that there was no violation of bilateral agreements with the United States.
Brazil has reduced its imports of U.S. UNEM said that the increase in ethanol supply was due to the expansion of corn ethanol production at home. Brazil's sugarcane industry used to dominate the ethanol market. However, in recent years corn and grain ethanol production has increased as Brazil explores other ethanol feedstocks.
In an interview, Renato Cunha, Executive President of Brazilian Sugar and Bioenergy Association NovaBio, stated that the U.S.'s new?tariffs demonstrate its desire to gain better access to Brazil's ethanol market, without compromising on sugar imports.
Cunha stated that "They want ethanol exported to a country which has no need for it to be imported." "That's not negotiation, that's imposition - they're two different things." Oliver Griffin, Roberto Samora and Andrea Ricci (Reporting; Oliver Griffin, Writing; Andrea Ricci)
(source: Reuters)
