Brazil's Energy and Mining Minister Alexandre Silveira criticized the potential imposition of a U.S. tariff on Brazilian ethanol as unreasonable. He highlighted the historical negotiations between the two countries regarding ethanol and sugar trade.
The U.S. government's decision to increase tariff rates to better align with global standards, as announced by President Donald Trump, cited Brazil's ethanol tariffs as an example of unfair trade practices. The document specified the differences in tariffs between the two countries and the trade imbalance in ethanol.
Silveira contended that for the plan to be fair and reciprocal, the U.S. should also eliminate import tariffs on Brazilian sugar. He emphasized that the lack of allowance for increased Brazilian sugar exports to the U.S. in Trump's strategy undermines global multilateralism and may negatively impact the U.S. economy.
While Trump's announcement currently has no immediate effect, it could lead to elevated tariffs for key trading partners by early April. This move is intended to spur negotiations with numerous countries aimed at reducing tariffs and other trade barriers.