The deadline for Brazil to extend the small tariff free quota on U.S. ethanol imported into their country has passed. That means U.S. ethanol is now up against a 20 percent tariff. Iowa Renewable Fuels Association Executive Director Monte Shaw says that tariff comes at the worst possible time for U.S. ethanol producers.
He says another major problem is that Brazil’s ethanol is being exported to the U.S. to California duty free thus displacing American ethanol.
Shaw says President Trump needs to take two actions, one is to place retaliatory tariffs on Brazil’s ethanol and also to get the RFS back on track to restore the domestic U.S. ethanol market by eliminating the small refiner waivers.
Shaw says Brazil is being hypocritical to preach about free trade for ethanol, to see their product come into the U.S. duty free while instituting a 20 percent tariff on U.S. ethanol.
