Brazil’s Finance Minister Haddad anticipates prolonged tariff negotiations with the U.S., involving sugar and ethanol. He expresses that the talks will address both parties’ interests, highlighting Brazil’s positions on its sugar and ethanol trade amidst heightened tariff discussions initiated by the U.S. Brazil aims for a strategy of reciprocity rather than retaliation.
Brazil’s Finance Minister, Fernando Haddad, indicated that prolonged negotiations concerning tariffs with the United States are anticipated. He noted that these discussions would likely encompass sugar and ethanol, highlighting that, “As they are waging war with the entire world, they will not make an exception for Brazil. That certainly will not happen.”
Haddad suggested that at the negotiating table, both countries would address their respective interests, with the United States likely bringing up ethanol while Brazil would focus on sugar. The backdrop of these talks arose following U.S. President Donald Trump’s tariff plan, which included Brazilian ethanol tariffs as an example of unfair trade practices.
In response, Brazil’s Energy and Mining Minister, Alexandre Silveira, deemed a potential U.S. tariff on Brazilian ethanol as unreasonable, emphasizing the history of joint negotiations on ethanol and sugar between the nations. Brazil is notable as one of the largest sugar producers, with its ethanol predominantly sourced from sugarcane—contrasting with the U.S. focus on corn-based ethanol.
Haddad also mentioned that concerns regarding the disparity in tariffs, particularly the high U.S. tariffs on sugar imports, would play a crucial role in discussions. He reminded that Brazil’s trade stance is cautious, aimed at avoiding escalation of tensions, and emphasized their readiness to outline Brazil’s trading demands. Accordingly, Haddad stated, “Meanwhile, Brazil is reviewing its entire import and export agenda, item by item, so that when we go to the negotiating table, we can also present our demands, with an approach of reciprocity, not retaliation.”
The discussions between Brazil and the United States over tariffs on ethanol and sugar are expected to be extensive. Brazil’s ministers have articulated concerns regarding potential tariffs, emphasizing the historical precedent of jointly negotiating these commodities. As both nations prepare for negotiations, Brazil aims to adopt a strategy focused on reciprocity, reflecting a commitment to amicable trade relations despite existing tensions.
Original Source: money.usnews.com
