US tariffs could hit Brazil’s sugar and ethanol producers hard

The introduction of additional 25% U.S. tariffs on Brazilian goods has drawn strong criticism from Brazil’s sugar and ethanol industry. Sector associations say the move represents a setback in bilateral trade relations and could negatively affect one of the country’s key export industries.

According to the Brazilian Sugarcane and Bioenergy Industry Association (UNICA), Brazil exported 253 mln liters of ethanol worth $163 mln to the United States in 2025, making the U.S. the industry’s second-largest export market after South Korea. The U.S. also imported 420 thsd tons of Brazilian sugar during the year, although this was well below the 1.12 mln tons shipped in 2024.

UNICA said the new tariffs ignore existing imbalances in trade relations between the two countries. The association noted that Brazilian sugar already faces tariffs and market access barriers in the U.S., while Brazil maintains a non-discriminatory policy toward ethanol imports. Meanwhile, U.S. Trade Representative Jamieson Greer justified the new duties by arguing that Brazil applies unfair trade practices.

The Brazilian Corn Ethanol Producers Association (UNEM) rejected those claims, stating that the country’s tariff policy fully complies with World Trade Organization rules. The association added that imports of U.S. ethanol have declined because Brazil has rapidly expanded its own corn ethanol production, significantly increasing domestic fuel supplies.

Industry representatives argue that the new U.S. tariffs are an attempt to secure broader access to Brazil’s ethanol market without offering any concessions on Brazilian sugar imports. According to NovaBio, Brazil no longer needs large volumes of imported ethanol, making Washington’s demands appear more like pressure than balanced trade negotiations.

Tags: Brazil, sugar, USA, duties, biofuel