A group of Midwestern Senators is urging U.S. Trade Representative Robert Lighthizer to respond to Brazil’s 20 percent ethanol tariff on imports over 600 million liters, or 158 million gallons. Brazil recently reinstated the tariff that will apply to U.S. ethanol exports to Brazil.
In 2016, the U.S. exported 264 million gallons of ethanol to Brazil and is poised for an increase this year as the U.S. is the primary ethanol exporter to Brazil.
U.S. ethanol producers called Brazil’s tariff plan “a trade barrier that threatens over $750 million in U.S. exports and American jobs.” Led by Iowa Senator Chuck Grassley, a letter asked Lighthizer to “directly engage the Brazilian government and quickly work to resolve” the issue.
The letter included Iowa Senator Joni Ernst, Nebraska Senators Deb Fischer and Ben Sasse, Illinois Senators Tammy Duckworth and Dick Durbin, Minnesota Senators Al Franken and Amy Klobuchar, along with Michigan Senator Debbie Stabenow and Indiana Senator Joe Donnelly.