Brazil readies retaliation to US tariffs, making trade a Brazil election issue

Key facts

• Brazil is preparing retaliatory measures against new U.S. tariffs.
• The U.S. imposed a 25% tariff on thousands of Brazilian products.
• Brazilian sugar and ethanol producers are significantly impacted by the tariffs.
• The U.S. is the second-most important foreign market for Brazilian ethanol.
• The trade dispute has become a contentious issue in Brazil's presidential election.

Brazil is preparing retaliatory measures against new U.S. tariffs, which have become a flashpoint in the country's presidential election. The U.S. government imposed a 25% tariff on thousands of Brazilian products, citing unfair trade practices, a move Brazil rejects. Brazilian sugar and ethanol producers expressed dismay, noting the U.S. is a significant market for their exports. The Union of the Sugarcane and Bioenergy Industry (UNICA) stated the decision disregards trade asymmetries, while the Brazilian corn ethanol association (UNEM) asserted Brazil's compliance with World Trade Organization rules. NovaBio stated the U.S. seeks access to Brazil's ethanol market without offering concessions on sugar imports. Candidates in Brazil's presidential race are blaming each other for the trade dispute.