Trump Weighs Retaliatory Tariffs on Brazil's Ethanol

The Trump administration is considering a reciprocal tariffs plan to address Brazil's ethanol tariffs, according to a report by Fox News. The memo, which was obtained by the news outlet, outlines a strategy to impose tariffs on Brazilian ethanol imports in response to Brazil's recent tariffs on U.S. ethanol exports.

The memo, which was reportedly sent to the U.S. Trade Representative's office, suggests that the reciprocal tariffs would be imposed at a rate of 25% on Brazilian ethanol imports. The move is seen as a response to Brazil's decision to impose a 20% tariff on U.S. ethanol exports in December 2022.

The U.S. ethanol industry has been vocal in its support of the reciprocal tariffs plan. The Renewable Fuels Association, a trade group representing the U.S. ethanol industry, has called on the Trump administration to take action against Brazil's tariffs, which they argue have put U.S. ethanol producers at a competitive disadvantage.

Brazil's ethanol tariffs have been a contentious issue between the two countries for several years. In 2017, the U.S. imposed a 20% tariff on Brazilian ethanol imports, citing subsidies and other unfair trade practices by Brazil. Brazil retaliated with its own tariffs on U.S. ethanol exports in 2018, and the two countries have been engaged in a back-and-forth tariff war ever since.

The reciprocal tariffs plan is just one of several trade measures being considered by the Trump administration in response to Brazil's ethanol tariffs. The administration has also threatened to impose tariffs on other Brazilian products, such as steel and aluminum, if Brazil does not remove its ethanol tariffs.

The outcome of the trade dispute between the U.S. and Brazil remains uncertain. However, the reciprocal tariffs plan highlights the Trump administration's commitment to protecting U.S. industries from what it sees as unfair trade practices by other countries.