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Leaders say reciprocal Brazilian tariffs good for ethanol, questionable for beef

The U.S. Trade Representative is imposing 25 percent retaliatory tariffs on Brazilian goods following its Section 301 Investigation, including ethanol.

Arlan Suderman with StoneX Group tells Brownfield, “They have a rapidly expanding ethanol demand base.”

“They’re now at 32 percent ethanol-blended gas. We somehow can’t get past 10 percent,” he says.

Products including beef, fish, tomatoes, fruit, and other agricultural goods were exempted from the tariffs.

Suderman says he suspects the decision surrounding beef imports is related to trade with China.

“Does that beef simply flow then to China because they’ve reached their capacity to China?” he questions. “I think President Trump wants to bring down beef prices, but at the same time, he wants business with China. It’s all, it’s 3D chess, is what it is.”

The United States Cattlemen’s Association says the exemption is a step backwards and tells bad actors they can still enjoy premium access into the U.S.

The National Corn Growers Association, Renewable Fuels Association, U.S. Grains & BioProducts Council, and Growth Energy petitioned the trade rep to implement duties in response to Brazil’s 18 percent tariff on U.S. ethanol imports.

Brownfield’s Carah Hart interviews Arlan Suderman.