Evandro Gussi criticized Trump’s tariffs on Brazilian ethanol, asserting that U.S. complaints are unfounded due to differing product types. He highlighted that Brazilian ethanol is more sustainable and important for climate action. Moreover, Gussi noted the existing steep U.S. tariffs on Brazilian sugar. UNICA will work with the Brazilian government, opposing any trade policy treating both types of ethanol equally.
Evandro Gussi, head of Brazil’s Sugarcane and Bioenergy Industry Association (UNICA), denounced President Donald Trump’s recent statements regarding Brazil’s 18% ethanol import tariff. He emphasized that U.S. objections are misplaced, as the biofuels produced by both nations are distinctly different products.
Trump’s executive order, signed on Tuesday, seeks to impose reciprocal trade tariffs to rectify what he views as “unfair” trade conditions, potentially increasing the existing 2.5% tariff on Brazilian ethanol imports. Gussi lamented the announcement, asserting that Brazilian ethanol is significantly more sustainable, producing only one-third of the emissions compared to U.S. ethanol. This sustainability has driven imports to California, which seeks to meet its environmental commitments.
Brazilian ethanol was specifically mentioned in a White House statement, highlighting tariffs as a rationale for the new trade measures. Gussi criticized Trump for overlooking the 100% tariff on Brazilian sugar, stating that the narrative of the U.S. as a free-market economy is misleading. He argued that the new taxes on Brazilian ethanol disregard vital climate goals and decarbonization efforts.
In response to UNICA’s situation, Gussi indicated that the association will collaborate with Brazilian officials but will not engage in trade discussions that equate Brazilian and U.S. ethanol as the same. Also commenting on the matter, Guilherme Nolasco, president of the National Corn Ethanol Union (UNEM), advised that the Brazilian government should prioritize enhancing biofuels via cooperative initiatives with the U.S. rather than escalating trade conflicts.
Nolasco affirmed that Brazil possesses significant information on the environmental and economic advantages of the ethanol sector and will safeguard its interests in international relations. He stated the importance of protecting domestic policies supporting the industry. Presently, Brazilian ethanol producers perceive U.S. suppliers as competitive globally, as evidenced by their substantial exports totaling 7.5 billion liters with aims to shift surplus supply.
In 2024, Brazil reportedly exported about 310 million liters of ethanol to the U.S., generating $228 million, equivalent to 16% of its total ethanol exports. Simultaneously, Brazil imported 110 million liters of U.S. ethanol, valued at $50 million.
The Brazilian ethanol industry, represented by UNICA and other stakeholders, is voicing strong opposition to U.S. tariffs on ethanol imports, arguing that Brazilian products are more sustainable compared to those from the U.S. They emphasize the need for collaboration instead of trade disputes, stressing the environmental benefits and the economic implications of such tariffs for Brazil’s domestic industry.
Original Source: valorinternational.globo.com
