U.S. corn growers and ethanol producers once enjoyed a level playing field with Brazil. But in 2017, without provocation, Brazil imposed a 20% tariff on U.S. ethanol. The tariff was suspended but was later reinstated at 16%. Then, in early 2024, Brazil increased the tariff to 18%. One of the nation’s top farmers, testifying today before members of a trade panel established by the Office of the United States Trade Representative, praised the Trump administration for investigating Brazil’s trade practices and encouraged quick action to address any wrongdoing.
“Unfortunately, Brazil does not value a level playing field and unfairly penalizes U.S. corn growers,” Illinois farmer and National Corn Growers Association President Kenneth Hartman Jr. told the panel. “Over the past decade, Brazil has taken targeted trade actions aimed at evaporating current and future demand for U.S. farmers. Brazil was the top market for U.S. ethanol exports by far,” Hartman told the panel. “But as soon as the tariff was reimposed, the market was in freefall decline. And while Brazil was imposing tariffs that resulted in a decline of American exports, Brazilian sugarcane ethanol was being imported into the United States at an increasing rate.”
Hartman suggests the United States should take reciprocal measures if negotiations do not result in Brazil’s elimination of the tariff. -source: NCGA Press Release.
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