Senators Amy Klobuchar of Minnesota and Chuck Grassley of Iowa sent a letter to President Biden urging him to use an upcoming meeting with Brazil’s president to discuss the country’s tax on U.S. ethanol imports.
The letter comes after Brazil’s Foreign Trade Chamber reinstated an import tariff on American ethanol shipped to Brazil. The new 16 percent tariff rate, which will increase to 18 percent in 2024, is a sharp departure from the zero percent tariff rate previously shared between the two nations.
“Our American ethanol industry should not be subject to prohibitive tariff and non-tariff barriers while Brazilian ethanol producers enjoy duty-free access to our market and biodiesel programs,” the senators said in the letter. “We believe this imbalance in tariffs and access to Brazil’s biofuels program is unwarranted and unfair, and we urge you to discuss this issue with the president directly.” Eight other senators signed on to the letter.