The U.S. government’s decision to reinstate a 30% tariff on Brazilian ethanol in 2025 marks a significant shift in the trade policy. For American ethanol producers, this move reduces competition and potentially increases domestic demand. The timing coincides with growing concerns over energy security and the search for lower-emission fuels.
Meanwhile, Brazil continues to gain ground in other agricultural exports. In 2023, nearly 1 million tons of Brazilian cotton and over 230,000 tons of beef and pork made their way into the U.S. market. While these numbers highlight Brazil’s growing presence, they also pose competitive challenges for American farmers, who face rising production costs and variable weather patterns.