Trump administration may look to start ethanol trade war with Brazil

In Washington, in response to Brazil’s potential import tariffs on US ethanol and increasing imports of Brazilian ethanol in the US, primarily California where it qualifies for a premium under the Low Carbon Fuel Standard, the Trump administration may look to impose trade measures on Brazilian imports as well. However, US imports only about one-quarter of what it exports to Brazil, leaving US producers concerned that a potential scaling up of retaliatory measures could be more damaging to them in the end.