Brazil Considers Reducing Ethanol Import Taxes to Align with U.S. Trade Policies

Politics BRAZIL, COMMERCE, DONALD TRUMP, GABRIEL ARAUJO, GERALDO ALCKMIN, HOWARD LUTNICK, INDUSTRIAL COMPETITIVENESS, INDUSTRY, ISABEL TELES, NATURAL GAS SUPPLY, NORTH AMERICA, O GLOBO, REUTERS, SAO PAULO, SARAH MORLAND, SOUTH AMERICA, TRADE, TRADE RELATIONS, TRUMP, U. S, UNITED STATES, WHITE HOUSE Nia Simpson February 28, 2025

Brazil Considers Reducing Ethanol Import Taxes to Align with U.S. Trade Policies

Brazil is considering a reduction in ethanol import taxes to address inflation and appease U.S. President Trump amid trade tensions. This strategy aims to encourage an exemption from U.S. tariffs on aluminum and steel. Discussions are ongoing between Brazilian officials and U.S. counterparts regarding trade relations and tariffs.

The Brazilian government is contemplating a reduction in import taxes on ethanol. This potential reduction aims to appease U.S. President Donald Trump and help mitigate inflation, as reported by O Globo. By lowering these taxes, Brazil seeks to persuade the United States to exempt it from the newly established 25% tariffs on aluminum and steel imports.

The Brazilian industry and trade ministry has not provided comments regarding this matter. Earlier in the month, the White House cited Brazil’s ethanol tariffs as an example of unfair trade practices, prompting discussions about a potential U.S. tariff on ethanol, which Brazil’s energy and mining minister deemed unreasonable.

Traditionally, negotiations surrounding the trade of ethanol and sugar coincide, with the United States holding a tariff on sugar. Brazilian Vice President Geraldo Alckmin is scheduled to discuss these tariff issues with U.S. Commerce Secretary Howard Lutnick, indicating ongoing dialogues between the two nations regarding trade relations.

In summary, Brazil’s evaluation of cutting ethanol import taxes reflects its strategy to navigate trade relations with the United States, particularly in light of recent tariffs imposed by Washington. This move could potentially ease domestic inflation pressures while addressing international trade disputes. Effective communication between Brazilian officials and U.S. counterparts remains a critical component in mitigating tensions and fostering agricultural trade stability.

Original Source: www.marketscreener.com