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Brazil mulls tariff on ethanol imports from U.S.

Brazil’s Agriculture Minister wants that country’s foreign trade council to impose tariffs on ethanol imports from the U.S.  A Reuters story says a more than 500 percent jump in U.S. ethanol exports to Brazil resulted in the call for tariffs ranging from 16 to 20 percent.  Brazil’s sugarcane refiners have shifted away from ethanol and put most of their processing capacity toward higher priced sugar.  Brazil mandates 27 percent ethanol blends in gasoline, so the output decline has ethanol providers short on supplies.

The tariff request was sent last week to Brazil’s body that determines import and export rules.  Brazil’s Energy Ministry biofuels director warned this week the U.S. will retaliate if Brazil imposes ethanol tariffs.