Trump threatens to tax Brazilian products as retribution for Brazil´s taxes on US ethanol imports

The President of the United States, Donald Trump, said that he is considering taxing Brazilian products, without specifying which ones, if Brazil does not reduce its taxes on ethanol imported from the USA.  According to Trump, his decision would be based on the principle of reciprocity. “With regard to Brazil, if they impose tariffs, we must have tariff equalization. We are going to present something about tariffs and justice, because many countries have charged us tariffs and we don’t charge them. It is called reciprocity. You can expect something about this very soon, ”he said.

The current agreement provides for exemption from import tariffs of up to 750 million liters of ethanol per year. Once this value is reached, the tariff changes to 20%. In Brazil, there is pressure from the Northeastern mills for Brazil to end this quota of 750 million liters and charge the higher tax rate on any imports.

Source: Valor Econômico

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