The Renewable Fuels Association today thanked President Trump for his commitment to reestablishing a fair and reciprocal ethanol trading relationship with Brazil. While Brazilian-made ethanol has enjoyed virtually duty-free access to the U.S. market since 2012, Brazil has implemented tariffs and disruptive trade barriers against imports of U.S. ethanol starting in 2017. As a result of Brazil’s punitive tariffs, U.S. ethanol exports to Brazil have essentially dried up in recent years—despite American-made ethanol being the most cost-competitive renewable fuel in the world.
In announcing the development of a comprehensive plan to restore fairness in U.S. trade relationships, the White House today cited Brazil’s tariff on U.S. ethanol as a specific example “where our trading partners do not give the United States reciprocal treatment.”
“For almost a decade now, we have spent precious time and resources fighting back against an unfair and unjustified tariff regime imposed by Brazil's government on U.S. ethanol imports,” said RFA President and CEO Geoff Cooper. “What's more ironic is that these tariff barriers have been erected against U.S. ethanol imports while our country has openly accepted—and even encouraged and incentivized—ethanol imports from Brazil.
"As the two largest ethanol producers on the planet, we long enjoyed a cooperative free-trade relationship with Brazil involving ethanol, relying on each other when there were shortfalls or disruptions in the U.S. or Brazilian marketplace. However, that bilateral cooperation was abandoned by Brazil in 2017, when they instituted a tariff rate quota scheme, and eventually adopted a tariff in 2020. The Brazilian tariff on U.S. ethanol now stands at 18 percent and has virtually eliminated all market access for U.S. ethanol producers. We thank President Trump for taking this action and hope this reciprocal tariff will help encourage a return to free and fair ethanol trade relationship with Brazil.”
Cooper noted that U.S. ethanol exports to Brazil went from 489 million gallons in 2018, with a value of $761million, to just 28 million gallons in 2024, valued at $53 million.
In 2020, RFA urged the first Trump administration to consider imposing reciprocal tariffs against Brazil in hopes that it would convince them to remove the tariffs, or at least bring them back to the negotiating table. RFA continued to push for a reciprocal tariff during the Biden administration. However, the Biden administration did not take action to impose of any such counter-tariff, despite Brazil's insistence on continuing its protectionist trade strategy.
