A media report by Reuters this week said unnamed US negotiators have asked Brazil to review existing ethanol import tariff quotas as “preconditions” for exempting the nation from Trump’s 25 percent steel import tariff.
US lobbyists are also concerned China may circumvent the US duties through Brazil, which currently charges a 20 percent tariff on ethanol imports exceeding 150 million liters.
The Reuters report said the demands are “the latest step” in the US-Brazil discussions over the steel import tariff. The US had confirmed Brazil would be temporarily exempted from paying the duties; the exemption expires as of May 1.
Brazil exports mostly semi-finished steel products to the US.