Mauro Vieira says that new US tariffs have no justification and no basis in reality: 'Political motivation' Brazilian ethanol and sugar producers regretted, this Thursday (16), the United States government's decision to impose a new 25% tariff on Brazilian products. For the sector, the measure represents a setback in the commercial relationship between the two countries. According to the Sugarcane and Bioenergy Industry Union (Unica), the United States purchased 253 million liters of Brazilian ethanol in 2025, for a total of US$163 million (R$832.93 million). As a result, the country was the second main destination for fuel exports, behind only South Korea. In the case of sugar, the USA imported 420 thousand tons of the Brazilian product in 2025. The volume, however, was well below the 1.12 million tons shipped in 2024. In a statement, Unica stated that the new tariff ignores the differences in the commercial relationship between the two countries. The entity highlighted that Brazilian sugar already faces tariffs and limitations when entering the American market, while Brazil, according to it, does not impose restrictions of this type on ethanol from the United States. The additional 25% tariff was announced by the Office of the United States Trade Representative (USTR) and is expected to take effect on July 22. The American government justified the measure by claiming that Brazil adopts commercial practices considered unfair - an accusation rejected by the Brazilian government. Donald Trump announces tariffs. AFP What are the USTR's arguments? Among the arguments presented by the USA is the difficulty in accessing the Brazilian ethanol market. Data from the American government itself shows that ethanol exports from the United States to Brazil have been falling in recent years. The National Corn Ethanol Union (Unem), in turn, stated that the Brazilian tariff applied to imported ethanol follows the rules of the World Trade Organization (WTO) and does not violate any bilateral agreement signed with the United States. The entity also explained that the drop in imports of American ethanol occurred because national production of corn ethanol has grown rapidly in recent years, increasing the supply of fuel in the Brazilian market and reducing the need for imports. With the rise in oil prices, the government approves an increase in the mixture of ethanol in gasoline Jornal Nacional/ Reproduction Traditionally, Brazilian ethanol was produced mainly from sugar cane. In recent years, however, the production of corn ethanol has gained strength and started to occupy an increasingly larger space in the sector. For Renato Cunha, executive president of the NovaBio association, which represents sugar and bioenergy producers, the new tariff shows that the United States wants to increase ethanol sales to Brazil without offering, in return, better conditions for the entry of Brazilian sugar into the American market. "They want to sell ethanol to a country that does not need to import this product. This is not negotiation, it is imposition," said Cunha in an interview.
Sugar and ethanol sector reacts to US tariff and says Trump's measure ignores market reality
Mauro Vieira says that new US tariffs have no justification and no basis in reality: 'Political motivation' Brazilian ethanol and sugar producers regretted, this Thursday (16), the United States government's decision to...
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