U.S. 25% tariff may hit Brazil’s ethanol, sugar, and seafood
A proposed 25% U.S. tariff on Brazilian imports could impact ethanol, sugar, and seafood exports from July 15. The measure stems from a USTR trade investigation, while Brazil seeks negotiations to ease tensions and protect affected agricultural sectors.
A proposal by the Office of the United States Trade Representative (USTR) to impose a new punitive 25% tariff on Brazilian products is expected to affect at least three key agribusiness sectors: ethanol, sugar, and seafood.
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These products were not included on the exemption lists and could face the additional tariff starting July 15. The measure stems from an investigation launched by President Donald Trump’s administration in July 2025 under Section 301 of U.S. trade law, which identified what it described as unfair and “unreasonable” trade practices. The restrictions would also affect several other sectors.
Although negotiations between the governments in Washington and Brasília are ongoing, the document indicates that significant differences remain unresolved.
The ethanol market has been on the radar of the U.S. government since the beginning of the Trump administration. The USTR argues that Brazil ended in 2017 the tariff treatment previously applied to ethanol imports, which had enabled bilateral trade in the biofuel. The issue is particularly important for U.S. corn-producing states, which underpin the country’s ethanol industry.
The USTR also criticizes Brazil’s handling of illegal deforestation. According to the agency, despite having a legal framework to combat the practice—the Forest Code, which took effect more than a decade ago—Brazil has historically failed to enforce it effectively, allowing illegal deforestation to persist.
Brazil’s response
The initial assessment by the Brazilian government and agribusiness sector is that exports of green, roasted and instant coffee, meat products, orange juice, mangoes, cocoa, coconut water, and açaí will remain exempt. Sugar, ethanol, and seafood, however, would be subject to the additional 25% tariff under the USTR investigation.
The process will still undergo another round of public consultations and a hearing on the proposed tariffs, scheduled for July 6.
Speaking at an event hosted by the São Paulo Commercial Association (ACSP) on Tuesday, Agriculture Minister André de Paula said he believes it is legitimate for the U.S. government to adopt such measures, but also legitimate to seek “points of convergence” to mitigate their effects.
“We will work jointly with the Ministry of Foreign Affairs. This is not the first time we have received news that we did not welcome, but dialogue is the path forward,” he said.
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Source : Valor International
