SAO PAULO: Brazil’s sugar and ethanol industry has criticised the U.S. decision to impose a 25% tariff on thousands of Brazilian products, warning that the move could undermine bilateral trade and reverse years of cooperation between the two countries.
The tariffs, announced by the U.S. government and due to take effect on July 22, have drawn strong opposition from Brazil’s sugar and biofuel sectors, which argue that the measure overlooks longstanding trade restrictions faced by Brazilian exports, Reuters reported.
According to the Union of the Sugarcane and Bioenergy Industry (UNICA), the United States imported 253 million litres of Brazilian ethanol worth US$163 million in 2025, making it the industry’s second-largest export market after South Korea.
The U.S. also imported around 420,000 metric tonnes of Brazilian sugar in 2025, down sharply from 1.12 million tonnes in 2024. Brazil is the world’s largest producer and exporter of sugar.
UNICA said the new tariffs fail to reflect the imbalance in bilateral trade. It noted that Brazilian sugar continues to face tariffs and market access restrictions in the United States, while Brazil applies a non-discriminatory import policy for ethanol.
The U.S. Trade Representative’s office justified the tariffs by citing what it described as unfair trade practices by Brazil, including limited access for U.S. ethanol exports. Brazil has rejected those allegations.
The Brazilian Corn Ethanol Association (UNEM) said Brazil’s tariff regime complies with World Trade Organization rules and does not breach any bilateral agreement with the United States.
UNEM added that imports of U.S. ethanol have declined because Brazil has rapidly expanded domestic corn ethanol production, increasing local supplies and reducing the need for imports. While Brazil’s ethanol industry has traditionally relied on sugarcane, grain-based ethanol production has grown significantly in recent years.
Renato Cunha, executive president of Brazilian sugar and bioenergy association NovaBio, said the United States was seeking greater access to Brazil’s ethanol market without offering reciprocal concessions for Brazilian sugar exports.
“They want to export ethanol to a country that has no need to import it,” Cunha said. “That isn’t negotiation, it’s imposition.”
