Grassley, Klobuchar, Colleagues Urge President Biden to Address Brazilian Tariff on American Ethanol

Ahead of Brazilian President Luiz Inácio Lula da Silva’s visit to the White House, Sens. Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.), both members of the Senate Agriculture Committee, sent a bipartisan letter to President Joe Biden urging him to use his meeting with President Lula to address Brazil’s recent decision to levy an import tariff on American ethanol shipped to Brazil.

The letter follows last week’s decision by the Brazilian Foreign Trade Chamber to reinstate 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.

“We believe this imbalance in tariffs and access to Brazil’s biofuel program is unwarranted and unfair, and we urge you to discuss this issue with President Lula directly,” the senators wrote. “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 biofuel programs.”

Sens. Joni Ernst (R-Iowa), Tammy Duckworth (D-Ill.), John Thune (R-S.Dak.), Sherrod Brown (D-Ohio), Mike Rounds (R-S.Dak.), Pete Ricketts (R-Neb.), Deb Fischer (R-Neb.) and Roger Marshall (R-Kans.) also signed the letter.

The full text of the letter can be found HERE.