Brazil's Sugar Industry Concerned Over US Tariffs

23-Jul-2026 12:26 PM

São Paulo. The imposition of an additional 25 percent import tariff on Brazilian goods by the US threatens to deal a severe blow to Brazil's sugar and ethanol industry. Industry representatives state that this move will impact bilateral trade relations and could weaken the trade of one of Brazil's key export products. It is worth noting that Brazil, located in Latin America, is the world's leading producer and exporter of sugar.

According to UNICA, the apex industry body, Brazil exported 253 million liters of ethanol—valued at $163 million—to the US in 2025, marking the highest volume after South Korea. Similarly, in 2025, the US imported 420,000 tonnes of sugar from Brazil, a figure significantly lower than the 1.12 million tonnes imported in 2024.

UNICA notes that Brazilian sugar already faces numerous barriers and existing customs duties in the US market. The new additional tariff is expected to severely impact ethanol and sugar exports and exacerbate the imbalance in bilateral trade.