News Capsule: US Tariffs Increase Pressure on Brazil's Sugar and Ethanol Industry
22-Jul-2026 11:35 AM
News Capsule: US Tariffs Increase Pressure on Brazil's Sugar and Ethanol Industry
★ Brazil's sugar and ethanol industry has strongly criticized the United States' decision to impose an additional 25% tariff on Brazilian products. Industry bodies say the move could hurt bilateral trade relations and negatively impact one of Brazil's key export sectors.
★ According to the Brazilian Sugarcane and Bioenergy Industry Association (UNICA), Brazil exported 253 million litres of ethanol worth $163 million to the United States in 2025, making the U.S. its second-largest ethanol export market after South Korea. The U.S. also imported 420,000 tonnes of Brazilian sugar in 2025, down sharply from 1.12 million tonnes in 2024.
★ UNICA said the new tariffs ignore the existing imbalance in trade relations. The association noted that Brazilian sugar already faces tariffs and market access restrictions in the U.S., while Brazil maintains a non-discriminatory policy toward ethanol imports.
★ Industry representatives argue that the U.S. is seeking greater access to Brazil's ethanol market without offering meaningful concessions for Brazilian sugar exports. They added that Brazil no longer requires large volumes of imported ethanol, making the U.S. demands appear more like trade pressure than balanced negotiations.