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Brazil Considers Reducing Ethanol Import Tax as a Gesture to Trump, Reveals Report

SAO PAULO, Feb 28 (Reuters) - Brazil's government is contemplating reducing import taxes on ethanol to appease U.S. President Donald Trump and combat inflation, as reported by newspaper O Globo on Friday, citing sources.

The aim behind the move to lower ethanol import taxes is to persuade the U.S. government to exempt Brazil from the recently imposed tariffs on aluminum and steel imports, the report mentioned.

The Brazilian industry and trade ministry did not immediately respond to a request for comment.

Earlier this month, the White House pointed out Brazil's ethanol tariffs as an example of unfair trade practices. The energy and mining minister mentioned that a potential U.S. tariff on the fuel would be challenging.

The minister argued that ethanol and sugar trade are usually discussed simultaneously, emphasizing that the United States currently maintains a tariff on sugar.

Brazilian Vice President Geraldo Alckmin was reportedly scheduled to hold a call with U.S. Commerce Secretary Howard Lutnick on Friday to discuss tariffs.