Greer announces 25% tariff on Brazil
Trade Representative Jamieson Greer announced late Wednesday he is taking final action, at President Trump’s direction, under Section 301 of the Trade Act of 1974 by imposing a 25% tariff on certain goods from Brazil.
Greer cited ethanol market access and allowing Brazilian farmers to exploit illegally logged land to gain an advantage over American farmers as two of the reasons.
“This follows a year-long investigation by USTR that determined that certain Brazilian measures related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable and burden or restrict the commerce of American farmers, workers, innovators and exporters. This action comes after the Office of the U.S. Trade Representative convened two public hearings, received over 360 public comments, and negotiated intensively with the government of Brazil to seek resolution of U.S. concerns,” USTR said.
Greer said, “Safeguarding American economic interests against unfair trade practices is the bedrock of President Trump’s America First policies. Whether it is punishing U.S. technology companies for refusing to censor political speech, backsliding on anti-corruption enforcement, or allowing Brazilian farmers to exploit illegally logged land to gain an advantage over American farmers, Brazil’s unfair trading practices have prevented U.S. workers and producers from accessing this important market with over 210 million consumers.”
The notice includes a discussion of products that are exempted and not exempted.
Growth Energy, a biofuels industry group, praised the decision.
“For nearly a decade, Brazil has unfairly blocked U.S. ethanol imports, while their own producers enjoy complete and unfettered access to American markets,” said Growth Energy CEO Emily Skor. “That imbalance has caused extraordinary harm to U.S. farmers and ethanol producers, and today’s decision marks an important step toward repairing the damage. We aren’t looking for preferential treatment — simply a return to the mutually beneficial trade that once defined the relationship between the world’s largest biofuel producers.
“We applaud the Trump administration for standing up against Brazil’s efforts to limit U.S. ethanol’s global eligibility for new uses, such as in the maritime and aviation sectors,” added Skor. “Moving forward, we look forward to working with USTR on additional remedies to create a level playing field for America’s farm exports.”