U.S. ethanol producers are asking the government to develop an immediate response to Brazil’s recently implemented tariffs on U.S. ethanol imports

The Renewable Fuels Association, Growth Energy and the U.S. Grains Council are calling on the Trump Administration to “immediately engage their Brazilian counterparts on the future of our relationships with regard to biofuels.”

On August 23, 2017, Brazil’s Chamber of Foreign Trade imposed an immediate two-year tariff-rate quota (TRQ) system for ethanol imports. Under the TRQ, a 20 percent tariff will be applied to purchases from the U.S. after a 600 million-liter (158.5 million gallon) quota is met. This year fuel ethanol exports to Brazil are at 1.17 billion liters (310 million gallons) through July, according to Census Bureau trade data.

The three organizations work jointly and with USDA to develop overseas markets for U.S. ethanol and Brazil is the largest ethanol export market for American producers. “American jobs, farms, and businesses are at risk; this cannot go unanswered,” the groups stressed in a statement Thursday.