Tariffs Squeeze Brazil's Sugar Industry Amid US Trade Tensions

Tariffs imposed by the Trump administration on Brazilian goods are impacting Brazil's sugar industry, especially in the northeast. Trump's proposals for higher tariffs threaten access to the U.S. market. The northeast, supplying most of Brazil's U.S. sugar quota, is poised to feel the sting of decreased exports.

SAO PAULO, July 7 - The Trump administration's tariffs on Brazilian goods are putting a strain on Brazil's sugar industry, particularly in the northeast region, according to an industry leader.

Renato Cunha, executive president of Brazilian sugar and bioenergy association NovaBio, stated in an interview that the majority of Brazil's sugar is produced in the center-south region. However, the northeastern producers are the main suppliers of Brazil's duty-free sugar quota to the U.S. Trump’s imposition of a 50% tariff in August 2025, later replaced by a temporary 10% import duty, is now facing potential escalation to a 25% tariff. The U.S. must decide by July 15 whether to proceed with these tariffs.

These measures could severely restrict Brazil’s giant sugar industry from accessing the U.S. market. Most of Brazil's sugar exports, governed by tariff-rate quotas which had zero duties until last year, face the threat of a 100% value-equivalent tariff if exported outside these quotas.