Published 14/02/2025 14:23 | Edited 14/02/2025 15:04
The White House announced on Thursday (13) a new round of import tariffs, including an 18% rate on Brazilian ethanol. The measure is part of President Donald Trump’s strategy of applying “reciprocal tariffs” against countries that, according to him, impose unfair barriers on US products.
Brazil, one of the main suppliers of biofuel to the US, was the first target of the government list.
According to memo distributed by the White House, the US imported more than $ 200 million in Brazilian ethanol in 2024, while its exports to Brazil totaled only US $ 52 million.
Trump justified the decision by claiming that “countries need to pay the same one they charge from the US,” and is just “balancing the game.” The measure also affects sectors of India and the European Union, such as agricultural products and vehicles.
The new rate is added to 25% tariffs on steel and Brazilian aluminum, already announced in the first week of the new Trump government. Brazilian diplomacy had been seeking to negotiate a flexibility of these tariffs, but the inclusion of ethanol on the list indicates that Washington is expanding its commercial offensive against Brazil.
The Lula government has not yet announced retaliation measures, but the Foreign Trade Secretariat (Secex) indicated that it evaluates scenarios for a possible response.
Vice President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, stated that “Brazil is not a problem for the US” and stressed that Americans have surplus in the bilateral trade balance.
The Brazilian sugar and alcohol sector reacted with concern to new tariffs. In a statement, the Union of Sugarcane and Bioenergy Industry (Unica) criticized Trump’s decision and warned of the impact on global energy transition.
“The measure aims to put on the same level the ethanol produced in Brazil and the United States, although they have different environmental attributes and different decarbonization potential. It makes no sense to talk about reciprocity, ”said the entity.
Brazil charges 18% tariff over US imported ethanol, a measure adopted in the Lula government after the exemption granted by Jair Bolsonaro in 2022. On the other hand, Brazilian products such as sugar face tariff barriers of up to 100% in the north market- American. The asymmetry in tariffs is pointed out as one of the main points of tension in the business relationship between the two countries.
With the term of application of new tariffs still open, Brazil seeks alternatives to negotiate with the US before the measures are entry into force. However, Trump’s strategy to impose sanctions before making room for dialogue complicates the perspectives for a beneficial agreement to Brazil.
Source: vermelho.org.br
