News

Trump threatens retaliation if Brazil extends tariff on U.S. ethanol

President Trump has threatened to retaliate if Brazil extends tariffs on U.S. ethanol at the end of this month.

Renewable Fuels Association CEO Geoff Cooper says he shares the President’s concern about what the Brazilian government will do when that country’s existing Tariff Rate Quota (TRQ) expires August 31st.

“The talk we’re hearing is that rather than just returning to a zero tariff and allowing free access into that marketplace, the Brazilians are considering applying a 20 percent tariff, or higher, to every gallon of U.S. ethanol.”

Trump told reporters Monday “if Brazil does tariffs, the U.S. will have an equalization of tariffs” on Brazilian ethanol.

Cooper tells Brownfield RFA is encouraged by the president’s remarks and emphasizes the importance of the world’s two largest ethanol producers leading by example.

“We want to work with the Brazilians, not against them, to help develop (and expand) global markets for ethanol and biofuels. And it’s hard to do that when they’re erecting barriers to our product, and really undermining the free and fair trade that we’re seeking worldwide.”

He says U.S. fuel ethanol exports to Brazil have fallen dramatically under the country’s TRQ, while U.S. imports of duty-free Brazilian ethanol are surging.