US 25% Tariff Could Impact Brazilian Ethanol and Sugar Exports

The U.S. Trade Representative's office has proposed a new 25% punitive tariff on Brazilian products, potentially effective from July 15, which is expected to impact key agricultural sectors including ethanol, sugar, and fisheries. This decision stems from a U.S. investigation under Section 301 into Brazil's 'unreasonable' trade practices. Despite ongoing negotiations between Washington and Brasília, significant divergences remain, particularly concerning ethanol trade and illegal deforestation.

The U.S. Trade Representative's (USTR) office has proposed a new punitive tariff of 25% on Brazilian products, a move expected to significantly impact at least three key segments of Brazil's agribusiness: ethanol, sugar, and fish. These products were not included in the exception lists and could face taxation starting July 15. This decision originated from an investigation launched by the Donald Trump administration in July 2025, based on Section 301 of U.S. trade law, which identified