Brazil Raises Tariffs on U.S. Ethanol Exports

This article is taken from USDA's Sept. 28 Grain Transportation Report:

According to recent reports, Brazil has imposed a 20 percent tariff on U.S. ethanol imports.

The tariff is a 2-year tariff rate quota (TRQ) and will take place when imports from the United States surpass 158 million gallons.

The action has caused agricultural trade organizations representing biofuels and grain interests to urge lawmakers to take immediate action against this decision.

The TRQ could ultimately affect the two countries’ agreement to expand worldwide ethanol demand and trade, and cause Brazilian consumers to pay more for ethanol.

Brazil, one of the leading importers of U.S. ethanol, imported 279 million gallons of ethanol from the United States last year, up over 140 percent from 2015, and representing 25 percent of total U.S. ethanol exports.

Year-to-date imports of ethanol to Brazil from the United States are currently at 310 million gallons, three times more than this time last year.