The Brazilian government has proposed to increase its sugar export quota to the United States as part of ongoing negotiations. The move has long been advocated by the country’s sugar industry, which is the largest producer and exporter of sugar.
The proposal has gained significant attention in BrasÃlia, where it is positioned as a potential bargaining tool. The move comes as a response to ongoing pressure from U.S. President Donald Trump, who has been pushing for a reduction in Brazil’s 18% tariff on American ethanol imports.
Other proposals under review include expanding Brazil’s beef export quota and obtaining market access for Brazilian lemons. The talks also covered potential U.S. tariffs on Brazilian steel and aluminum, which are being overseen by Vice President Geraldo Alckmin.
Brazil benefits from a preferential sugar export quota of 146,600 tons, free from U.S. import taxes. For years, the government has attempted to raise this quota to 300,000 and 400,000 tons but has faced rejection.
In 2024, Brazil exported 876,700 tons of sugar to the United States, earning approximately $440 million in revenue. Sugar exports exceeding the quota are subject to an import tax of around 80%. As sugar is produced across 26 U.S. states and classified as a ‘highly protected’ commodity, Brazilian sources indicates that trade negotiations remain difficult.
According to government analysts, sugar is linked to ethanol, an area where the U.S. is pushing for increased access to the Brazilian market. This connection could serve as a potential justification for approving the quota expansion. Most of Brazil’s biofuel comes from sugarcane, while U.S. ethanol is corn-based.
Vice President Alckmin and U.S. Secretary of Commerce Howard Lutnick discussed the issue in a videoconference, during which Brazil proposed forming a working group to improve bilateral trade relations.
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