Key facts
- The U.S. Trade Representative has imposed a 25% tariff on Brazilian ethanol.
- U.S. agricultural groups, including the National Corn Growers Association and Renewable Fuels Association, supported the tariff.
- The USTR stated that Brazil's market access for U.S. ethanol has been unfairly limited.
- Brazil has maintained an 18% tariff on U.S. ethanol imports since 2023.
- U.S. ethanol exports to Brazil have significantly decreased since 2018.
The U.S. Trade Representative has imposed a 25% tariff on Brazilian ethanol, citing unfair limitations on market access for U.S. products. This move comes after several U.S. agricultural groups, including the National Corn Growers Association and the Renewable Fuels Association, urged the USTR to implement the duty.
Matt Frostic, First Vice President of the National Corn Growers Association, stated that the goal is to create a more level playing field, referencing Brazil's existing 18% tariff on U.S. ethanol imports since 2023. The Renewable Fuels Association also criticized Brazil's national biofuels policy, which they claim disproportionately affects U.S. ethanol producers' accreditation.
U.S. ethanol exports to Brazil have seen a significant decline, falling from approximately one-third of total U.S. exports in 2018 to 1.3% in 2024 and 1.8% in 2025. The U.S. Grains & BioProducts Council, American Seed Trade Association, United States Cattlemen’s Association, and Growth Energy also participated in the Section 301 investigation hearings.