The U.S. Trade Representative has concluded its Section 301 investigation of Brazil and found ethanol market access to be among several trade practices considered to be unreasonable or restrictive to U.S. commerce, noting that Brazil “abruptly discontinued its previously balanced tariff treatment of ethanol and has since failed to provide reciprocal tariff treatment for U.S. ethanol exports.”
As a result, Ambassador Jamieson Greer has proposed a 25% tariff on “all goods of Brazil” with certain exceptions, while the United States continues to engage intensively with Brazil to seek resolution of U.S. concerns.
“Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet, which have accelerated in recent weeks,” said Greer. “However, we continue to have substantial differences in resolving the issues identified in this investigation. I look forward to continuing engagement with the Brazilian Government in advance of the July 15, 2026 statutory deadline for taking responsive action.”
According to the USTR findings:
The acts, policies, and practices of Brazil with respect to ethanol market access are unreasonable because Brazil has abandoned bilateral cooperation to promote ethanol trade and Brazil has instead established non-reciprocal and unfair conditions for trade, which denies fair and equitable market opportunities for U.S. ethanol producers. The acts, policies, and practices burden or restrict U.S. commerce because U.S. ethanol exports are increasingly unable to compete in the Brazilian marketplace given Brazil’s high tariffs, while Brazil exports a significantly greater value of ethanol to the United States.
In a statement, Renewable Fuels Association President and CEO Geoff Cooper said they agree with USTR that Brazil’s ethanol trade policies are unreasonable and restrictive, and support the Trump administration’s efforts to level the playing field. “The U.S. ethanol industry would prefer to return to days of free and open two-way trade with Brazil. But the Brazilians have instead chosen to enforce punitive tariffs and technical barriers that have resulted in lost market opportunities and financial harm to U.S. producers. Thus, the Trump administration has no choice but to respond in kind,” said Cooper.
USTR will hold a hearing about the proposed action on July 6, 2026 and interested persons should submit requests to appear at the hearing by June 22. Written comments are due by July 1.