NE plant owners fear opening of the ethanol market in negotiations with Trump

In a letter to the Trump administration, the US Chamber of Commerce pointed out that, in February 2023, the Brazilian Chamber of Foreign Commerce (Camex) reestablished a 16% tariff on US ethanol imports, later increasing it to 18% in 2024.

“Previously, ethanol imports benefited from 0% tariffs under a tariff quota program,” said the entity, still in the first half of 2025.

“The US imposes a 2.5% tariff on Brazilian ethanol, highlighting an imbalance that has become a significant trade irritant in the bilateral relationship. Additionally, Brazilian producers benefit from access to US programs such as California’s Renewable Fuels Standard and Low Carbon Fuel Standard, while US ethanol does not have access to Brazil’s RenovaBio program,” he said.

The North American private sector recommended that the Trump administration press for an opening. “Brazil must reduce ethanol tariffs to ensure reciprocity and allow fair market access for US producers,” he said. “The imbalance in tariffs, combined with the challenges of access to RenovaBio, not only puts North American producers at a competitive disadvantage, but also affects price stability and hinders energy cooperation between the two largest ethanol producing nations”, he added.

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THE Facto News also found that, in a letter sent by Brazil to the Trump administration on November 4, national negotiators officially suggest that the White House temporarily remove the 40% tariffs imposed by the North Americans on all Brazilian products.