The RFA thanks President Trump for seeking to restore fair ethanol trade with Brazil, where tariffs have severely limited U.S. ethanol exports. Brazil’s 18% tariff on U.S. ethanol, instituted after a previous cooperative trading relationship, has significantly reduced market access. The RFA hopes mutually reciprocal tariffs will revive trade practices and improve the situation for U.S. ethanol producers.
The Renewable Fuels Association (RFA) expressed gratitude towards President Trump for his efforts to reinstate fair ethanol trade relations with Brazil. While ethanol produced in Brazil has faced no tariffs in the U.S. since 2012, the Brazilian government has levied tariffs and trade barriers on imported U.S. ethanol since 2017, severely impacting American exports despite the country’s competitive pricing in the renewable fuel market.
In announcing plans to address inequities in trade, the White House cited Brazil’s tariffs on U.S. ethanol as a key factor hindering equitable treatment. RFA President and CEO Geoff Cooper emphasized the need for a balanced trading relationship. He highlighted the irony of Brazil imposing tariffs while the U.S. continues to welcome and incentivize Brazilian ethanol imports.
Previously, the U.S. and Brazil enjoyed a mutually beneficial free trade agreement regarding ethanol. However, Brazil’s imposition of a tariff rate quota in 2017, and a subsequent 18% tariff enacted in 2020, has curtailed U.S. market access for ethanol producers. RFA appreciates President Trump’s actions, advocating for a return to cooperative trade relations.
Cooper noted a drastic decrease in U.S. ethanol exports to Brazil, dropping from 489 million gallons valued at $761 million in 2018 to only 28 million gallons worth $53 million in 2024. RFA had previously urged Trump’s administration to consider reciprocal tariffs to address Brazil’s protective measures and persisted in this request during the Biden administration, which took no action despite Brazil’s protectionist stance.
The RFA acknowledges President Trump’s commitment to addressing unfair tariff barriers imposed by Brazil, which have drastically diminished U.S. ethanol exports. The hope is that implementing reciprocal tariffs will restore fair trade practices, moving towards a renewed cooperative relationship. Given the historical context of this trade relationship, the RFA will continue to advocate for solutions favoring U.S. ethanol producers.
Original Source: ethanolrfa.org
