US Tariffs on Brazil Are a Bitter Pill for Sugar and Ethanol Makers

• Brazil’s ethanol and sugar producers have criticised the US government’s decision to impose new 25% tariffs on Brazilian goods, arguing that the move marks a setback in trade cooperation between the two countries.
• According to Brazil’s sugarcane and bioenergy industry group UNICA, the US was Brazil’s second-largest foreign market for ethanol in 2025 after South Korea, accounting for 253Mn litres of exports valued at US$163.0Mn.
• The US also accounted for 420,000 metric tons of sugar exports from Brazil in 2025, well below the 1.12Mn tons shipped in 2024. UNICA said Brazilian sugar exports continue to face US tariffs and market-access restrictions, while Brazil maintains a non-discriminatory policy toward ethanol.
• US Trade Representative Jamieson Greer justified the tariffs by citing unfair trade practices and Brazil’s ethanol market access, claims rejected by Brazil. Industry groups said the decline in Brazilian imports of US ethanol reflects rising domestic corn ethanol production rather than a breach of trade rules, while NovaBio argued that Washington is seeking greater ethanol access without offering concessions on Brazilian sugar imports.

(Source: Reuters)