Brazil resumes ethanol tariffs in setback for Trump
Brazilian President Jair Bolsonaro (central) speaks alongside Brazilian Economy Minister Paulo Guedes (left), deputies and senators during a statement on financial aid for vulnerable Brazilians amid the COVID-19 pandemic, at Planalto Palace, in Brasilia, on Tuesday.
Brazil reinstated a 20 percent tariff on US ethanol imports on Monday in a setback for President Donald Trump’s administration, which lobbied to retain an exemption for the politically important industry.
The South American country had previously exempted up to 750 million liters a year of imported ethanol from tariffs, but did not renew the benefit after it expired on Sunday, an official said.
“It’s a very sensitive issue,” the official said, adding it was possible the inter-ministerial committee that decides tariff questions could hold an extraordinary meeting “in the coming days” to revisit the matter.
The US ambassador in Brazil, Todd Chapman, had reportedly lobbied hard to retain the exemption.
Chapman now faces an inquiry before the US House of Representatives’ Foreign Affairs Committee over reports he violated a law barring federal officials from engaging in partisan activities by telling Brazilian counterparts that a renewal of the ethanol exemption would help Trump’s re-election chances.
Ethanol is a key agricultural export for Iowa, a battleground state in the November election.
Brazilian President Jair Bolsonaro has sought to cultivate a close relationship with Trump, whom he openly admires and to whom he is often compared.
