The ethanol industry is calling for fair trade with Brazil

The U.S. ethanol industry is raising concerns over an uneven trade relationship with Brazil.

The U.S. Trade Representative’s Office launched an investigation into Brazil last week, and the ethanol industry will be part of that inquiry. While the U.S. imports sugarcane ethanol from Brazil, the Brazilian market places tariffs on American corn ethanol exports. Industry leaders say this lack of reciprocity is a fairness issue that needs addressing.

“We’ve had concerns about that mainly because Brazil has a tariff on U.S. ethanol, U.S. corn ethanol, going to Brazil, and we don’t have the same tariff in the U.S. And so, certainly, the Trump administration has been very engaged on this fairness issue,” said Chris Bliley, senior vice president of regulatory affairs at Growth Energy.

However, Bliley adds that it is not the only concern with Brazil’s sugarcane ethanol.

“I think one of the other concerns we have is that Brazilian sugarcane ethanol can get an advanced biofuel RIN where corn starch ethanol is not, and so that’s an issue that we’ve been working on as well. But we’re pleased to see that our Trade Representative and others in the administration are starting to address this fairness issue. And hopefully, we can return to parity between the two markets.”

Meanwhile, U.S. ethanol inventories have dropped to their lowest level in seven months. Stocks fell below 23.7 million barrels last week, despite a slight uptick in production. This tightening supply could affect fuel markets as demand holds steady.

Related Stories
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
Sen. Roger Marshall explains which types of beef are imported into the United States, how there’s room for new imports, and logical reasons for current high prices.
Bioethanol continues to gain ground as the bridge fuel connecting agriculture, aviation, and maritime industries in the global shift toward lower-carbon energy.
Expanding bioethanol use strengthens rural economies, supports farm markets, and positions U.S. agriculture at the center of global low-carbon trade.
NCBA CEO Colin Woodall says more conversations need to occur with stakeholders present surrounding President Trump’s proposal to lower consumer beef prices with Argentinian imports.
Cattle groups say additional imports would offer little relief for consumers but could erode rancher confidence as the industry begins to rebuild herds.
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
Global trade teams and summit discussions highlight expanding opportunities for U.S. corn and ethanol exports as nations explore renewable fuel options and reduced-carbon energy pathways.

LATEST STORIES BY THIS AUTHOR:

From meatpacking settlements to landmark NEPA rulings, Roger McEowen outlines the top legal developments in 2025 that will shape agriculture in the years ahead.
Alan Bjerga with the National Milk Producers Federation joined us to review new policies and regulations supporting the dairy industry and what they mean for the year ahead.
Despite rising costs and growing food insecurity, meat demand remained strong in 2025 as higher-income consumers offset cutbacks elsewhere. Economists break down the K-shaped economy, upcoming USDA cattle reports, livestock production outlooks, and renewed debate over beef imports and country-of-origin labeling heading into 2026.
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
From rising trade tensions in Europe to a pending Supreme Court decision on tariffs and shifting demand from China, global trade policy spearheaded by President Donald Trump continues to shape the outlook for U.S. agriculture—adding uncertainty as farmers navigate another volatile year.
The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.