The United States government announced a 25% tariff on thousands of Brazilian products, scheduled to take effect on July 22, 2026. U.S. Trade Representative Jamieson Greer stated the measures address what the administration characterizes as unfair trade practices, specifically citing limited U.S. access to Brazil's ethanol market.
Brazilian sugar and ethanol trade groups, including the Union of the Sugarcane and Bioenergy Industry (UNICA), criticized the decision. UNICA reported that the U.S. was Brazil's second-largest ethanol export market in 2025, valued at $163 million. The organization argued that while Brazil maintains a non-discriminatory ethanol policy, Brazilian sugar remains subject to various U.S. market restrictions.
The Brazilian corn ethanol association (UNEM) stated that its trade policies comply with World Trade Organization rules and do not violate bilateral agreements. UNEM attributed the decline in U.S. ethanol imports to the expansion of Brazil's domestic corn ethanol production, which increased internal supply. Industry leaders in Brazil suggested the tariffs are an attempt to force greater ethanol market access without lowering U.S. barriers to Brazilian sugar exports.